Strong box office gains and premium content help offset a slow August, but Cineplex shares remain under pressure
Key Numbers
- September box office: $37.7 million, up 7% year over year
- Q3 box office to date: $159.5 million, down 9% from 2024
- Q2 total revenue: $361.8 million, up 30.5%
- Adjusted EBITDAaL: $33.4 million vs. $0.9 million last year
- Year-to-date stock return: -7%
Cineplex (TSX: CGX) posted a solid recovery at the box office in September, bringing in $37.7 million in revenue—up 7% from the same month last year and enough to put it ahead of 2024’s pace. The gain follows a soft August and helps stabilize third-quarter performance, now sitting at 91% of last year’s levels.
Driving the September rebound were standout performances from The Conjuring: Last Rites and Demon Slayer: Infinity Castle. Both films set franchise records and performed especially well in premium formats, with The Conjuring generating nearly 60% of its revenue through Cineplex’s enhanced viewing experiences. This continues a broader trend that Cineplex leaned on in Q2, where premium formats drove over 46% of total box office revenue.
Is Cineplex trending in the right direction?
In its most recent quarter, Cineplex posted $361.8 million in revenue, a 30.5% jump from the prior year, along with a dramatic swing in profitability. The company’s net loss from continuing operations shrank from $21.3 million a year ago to just 2.2 million, thanks to a 33% rise in attendance and record-setting per-patron metrics. Concession spending hit $10.04 per guest, and box office revenue per patron reached an all-time high of $13.68.
However, despite these strong operational metrics, the stock hasn’t followed suit. Shares of Cineplex are down about 7% so far in 2025, even though its five-year return stands at an impressive 145%. The stock also trades at under 14 times estimated future earnings, which may appeal to value investors looking for a stable reopening play with room for upside.
While Cineplex’s core business has clearly regained strength, especially in terms of guest spending and premium content demand, concerns likely remain around broader economic pressures, content supply volatility, and the slow pace of earnings recovery. Still, the company is diversifying through media, digital signage, and location-based entertainment, all of which contributed meaningfully last quarter.
For investors comfortable with a bit of volatility and focused on a longer-term recovery story, Cineplex may offer an attractive entry point at current levels. The recent numbers suggest a business that’s regaining momentum—even if the market hasn’t fully priced it in yet.