Cineplex Inc (CPXGF) Q4 2024 Earnings Call Highlights: Record Revenue Growth and Strategic ...

In This Article:

  • Total Revenue: Increased 15.1% to $362.7 million in Q4 2024.

  • Adjusted EBITDAaL: Increased 66.6% to $40.3 million in Q4 2024.

  • Consolidated EBITDAaL Margin: Increased to 11.1% from 7.7% in the prior year.

  • Attendance: Increased 60.1% to approximately 11.1 million in Q4 2024.

  • Film and Entertainment Content Segment Revenue: Increased 15.4% in Q4 2024.

  • Media Segment Revenue: Increased 27.1% to $51.5 million in Q4 2024.

  • Digital Place-Based Media Revenue: Increased 70.2% to $21.8 million in Q4 2024.

  • LBE Segment Revenue: Slightly decreased to $33.6 million from $34 million in the prior year.

  • Cash and Credit Facility: $84 million in cash with no drawings under the $100 million credit facility.

  • Net Cash CapEx for 2024: $66.4 million, below initial guidance of approximately $80 million.

  • Share Buyback: Purchased 620,275 common shares at an average price of $10.48, totaling approximately $6.6 million.

Release Date: February 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Cineplex Inc (CPXGF) achieved record-breaking box office and concession per person revenues in Q4 2024, driven by popular films like Gladiator 2, Wicked, and Moana 2.

  • The company expanded its premium offerings, adding new ScreenX, UltraAVX, D-Box, and IMAX screens, which contributed to 42% of total box office revenues.

  • Cineplex Inc (CPXGF) leveraged its robust data and Scene+ membership to drive attendance, with over one-third of Scene+ guests being first-time or returning visitors.

  • The international cinema segment saw significant growth, with international programming representing 10.2% of total box office revenues, up from 3.7% in North America.

  • Cineplex Inc (CPXGF) reported a 44.3% year-over-year revenue growth in its digital media segment, driven by new digital out-of-home clients and increased advertising opportunities.

Negative Points

  • Despite revenue growth, the LBE segment experienced a decline in store-level adjusted EBITDAaL margins due to minimum wage increases and preopening costs.

  • The company faced challenges with the Competition Tribunal's decision regarding its online booking fee, leading to an appeal and ongoing legal proceedings.

  • Cineplex Inc (CPXGF) experienced a decrease in Cinema Media revenue per patron in Q4, attributed to a film slate more oriented towards kids, affecting advertiser interest.

  • The company is still navigating the impacts of potential US and Canadian trade tariffs, although it believes these will not materially affect its business.

  • Cineplex Inc (CPXGF) is managing increased costs related to minimum wage hikes, which could impact profitability if not offset by revenue growth.