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TORONTO – Cineplex Inc. (TSX:CGX) set company records for total revenue and adjusted earnings in the second quarter, helped by strong growth at its media arm as well as increased attendance at its theatres.
The company, which has Canada’s largest chain of movie theatres, earned $28.5 million or 45 cents per share in the second quarter on $301.6 million of revenue overall.
The results were up from $21 million or 34 cents per share on $263.7 million in revenue a year ago.
Adjusted earnings, which excluded a number of items, rose to $58.7 million — an increase of 24.2 per cent from $47.3 million in the comparable period of 2012.
“It was a record quarter for Cineplex,” said Ellis Jacob, the president and CEO of Cineplex Inc.
“Increased attendance resulting from strong film product during the period and increased revenues generated from concession, box office and media, all contributed to the tremendous gains.”
Attendance rose 8.6 per cent to 18.6 million for the three months ended June 30 compared with 17.1 million a year ago.
Meanwhile, concession revenue improved about 12 per cent to $89.7 million compared with $80 million a year ago as concession revenue per patron increased to $4.81 compared with $4.66 in the second quarter last year.
The company’s small but rapidly growing media business contributed $26.4 million of revenue — an increase of 44.7 per cent from the same time last year.
Cineplex reached a deal in June to buy 26 theatres — all but two of them in Atlantic Canada — from Empire Co., the Nova Scotia-based parent of Sobeys Inc. for $200 million in cash.
Last month, Cineplex also announced a deal to grow its digital signage business through the purchase of EK3 Technologies, a private company based in London, Ont.
Cineplex said EK3’s operations in 32 states, as well as in Canada and other countries, will complement its own digital signage business and provide its advertising-driven media arm with a way to expand into the United States.
“This acquisition complements our existing Cineplex Digital Media business and combined with EK3, will make us a leader in the indoor digital signage industry and provide a platform for significant growth throughout North America,” Jacob said in the earnings report Thursday.
The company said in its July 17 announcement that it would pay about $40 million up front plus the potential for performance-related payments that could push the total to $78 million.
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