Cineplex Galaxy Income Fund said Friday more patrons sought refuge from global economic gloom inside its cinemas during the first three months of 2009, leading to a surge in revenues and a profitable quarter.
The movie theatre operator reported net earnings of $3.7 million for the quarter, reversing a year-earlier loss of $2.3 million.
Net revenue rose 11.2% to $211 million from $189.8 million recorded the year before. The increase was driven by a 9% increase in attendance, which brought in $16 million for the quarter.
Cineplex Entertainment chief executive Ellis Jacob said the quarterly results represented a record for both profits and attendance, adding that the economic gloom that has ravaged other companies has benefited the fund.
“Cineplex continues to perform well during these difficult economic times,” Jacob said in a statement.
“Given the challenges with the current economy, we are happy to provide our guests with an affordable escape.”
Cineplex also saw its media revenue increase by 2.4% to $10.6 million in the quarter. The increase of about $200,000 was comprised of “a $2.2 million increase in non-cash barter revenue offset by a $2 million reduction in cash-settled media revenue.” The fund said it entered into a number of “cross-promotional non-cash barter agreements” with various partners for radio and television promotions.
