Canada: Cineplex Focuses on Diversification Strategy for Future Growth

Popular streaming services such as Netflix and others continue to represent growing competition for traditional cinema operators. Watching films and series from the own living room at home sees more and more tempting for many potential cinemagoers. However, Toronto-based Cineplex Inc. recently reported record annual results for 2018. With total revenues of around 1.6 billion CAD, the group recorded an increase of 3.8 percent over last year. In addition, net income increased – to 77 million CAD (2017: 70.3 million CAD). Visitor attendance was recorded at 69.3 million guests in 2018, corresponding to a slight decrease of 1.6 percent (2017: 70.4 million visitors).

The results for the “Amusement & Leisure” division of the company show that diversification initiatives, such as the strategic partnership with VR technology provider VRstudios (cp. EAP news f. 20 Sept 2018) as well as the exclusive cooperation with The Void for the development of new hyper reality experiences (cp. EAP news f. 17 July 2018) are already delivering initial successes. Amusement revenues increased by eleven percent to 205.8 million CAD compared to the prior year. In the future, the company intends to continue its investments in location-based entertainment offerings. In addition to the previously announced The Rec Room gaming and entertainment center locations to open in 2019 in Mississauga/Ontario, Burnaby/British Columbia and Whitby and Brampton/Ontario, plans for the opening of three further locations were announced – in St. John’s/Newfoundland and Labrador as well as in Winnipeg/Manitoba (both in 2019) and in Barrie/Ontario (in 2020). (eap)