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TORONTO – Expanding into new businesses for example gaming that has been enhanced specialty food has helped theatre chain Cineplex Inc. lure people from on-demand entertainment in their living spaces, but The exorcist proved to be the real force behind its blockbuster annual and fourth-quarter results.
Net income more than doubled during the three-month period ended Dec. 31 to $76.8 million or $1.22 per share, up from $32.A million (51 cents) a year earlier, and overall revenue soared 23 per cent to $407.4 million, the Toronto-based company said Tuesday.
Box office revenue was $196.3 million at that time, up 14 percent.
The fourth quarter and full year 2015 results were the best in Cineplex’s history, Cineplex Entertainment chief executive Ellis Jacob told analysts on the conference call.
“Star Wars: The Force Awakens generated 22 percent of box office revenue during the quarter, even though the movie had played for (just) Fourteen days,” Jacob said, also citing Spectre and also the Martian as strong draws. “Simply put, the quarter was a tremendous success, and proves once more that customers love experiencing a movie within the theatre on the giant screen having a great sound.”
Star Wars: The Force Awakens, which this week became the third film in history to surpass US$2 billion in global box office sales, together with Titanic and Avatar, was Cineplex’s top film for 2015 and the highest grossing film up to now in North America.
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Box office revenue per patron at Cineplex climbed 6.3 percent to $9.63 while concession revenue per patron was $5.58, up 8.6 percent.
Cineplex also had record patron attendance in the quarter of 20.4 million, seven percent greater year ago.
Cineplex, that also operates the advertising businesses Cineplex Media and Cineplex Digital Media, has worked to diversify its business recently. It hosts Sony Playstation video chat gaming tournaments at a number of its bigger theatres and this spring it will open its first location of the Rec Room, a venue which will offer gaming elements for example bowling, ping pong, arcade and digital simulation games, as well as live entertainment, a cafe or restaurant and a bar.
For the entire year, Cineplex saw revenue rise 11 percent in 2015 to $1.37 billion, from $1.23 billion in 2014. Overall attendance rose 4.6 per cent. Net income rose 76 per cent to $134 million, or $2.12 per share, from 76.3 million ($1.20).
The latest The exorcist instalment also provided holiday toy sales having a significant boost this year.
Toy sales in Canada rose eight percent in 2015 to $1.8 billion from $1.6 billion in 2014, according to data from market research firm NPD Group Canada, and Star Wars accounted for about 20 per cent of the total increase.
Sales of Star Wars toys surged 244 percent during the week of Dec. 20 to 26 in contrast to last year. Toys associated with the movie franchise were the top-selling toys of the season in Canada, hitting sales of near to $100 million in Canada.
Financial Post
hshaw@nationalpost.com
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