A movie goer makes his way to a theatre at a Cineplex in Toronto, on Tuesday, October 6, 2020. THE CANADIAN PRESS/Chris Young

A movie goer makes his way to a theatre at a Cineplex in Toronto, on Tuesday, October 6, 2020. THE CANADIAN PRESS/Chris Young

Cineplex tries to woo moviegoers with theatre rentals after 91% drop in tickets sold

Earlier, Cineplex reported a net loss of $121.2 million or $1.91 per share

Canada’s largest theatre saw 91 per cent fewer moviegoers during the summer compared with last year, pushing the company to roll out new offerings for film lovers.

Cineplex Inc. said Friday that only 1.6 million people visited the movies during its third quarter, down from 17.5 million in the third quarter of 2019.

To lure moviegoers back, the company will heavily market affordable private theatre rentals ahead of the holiday season. It will also cut back on new projects and try to further reduce real estate and payroll costs with the sale of its head office in Toronto and the federal government’s wage subsidy program.

“We’ve done all the things we can to make sure we get through, and we feel strongly about the exhibition industry’s ability to recover,” Ellis Jacob, Cineplex’s president and chief executive, told The Canadian Press.

Earlier, Cineplex reported a net loss of $121.2 million or $1.91 per share, down from the $13.4-million or 21-cents-per-share profit it reported last year at the same time.

The chain’s revenue was $61 million in the three months ending Sept. 30, down from $418.4 million during the same period in 2019.

Analysts expected Cineplex to lose $57.3 million or $1.31 per share, according to financial data firm Refinitiv.

The company has been rapidly trying to reverse such results, which were triggered by waning audiences amid temporary theatre closures ordered by public health officials in COVID-19 hot spots.

Cineplex’s efforts to cope with pandemic changes have included raising an extra $303 million in credit, materially reducing net cash lease outflows by about $58 million and pursuing the sale of its head office location with the potential for a leaseback transaction.

“We completed a thorough review of our rights under our lease agreements and where we thought we had attractive rights, we approached landlords to monetize some of these rights,” chief financial officer Gord Nelson told analysts on a Friday call.

Cineplex has also temporarily laid off staff, slashed salaries and used $22.5 million from the government’s wage subsidy plan to reduce payroll expenses to $3.9 million during the quarter, down from $40.9 million at the same time last year.

On Friday, it introduced private auditorium rentals for as low as $125.

The venture will allow up to 20 guests to enjoy a film together while distancing and will include a choice of 1,000 movies including holidays hits “the Grinch” and “Love Actually.”

“We wanted to get it out there because it gives guests another opportunity and we’ve done it to so you can get a movie at an accessible price point, you can buy it online which makes it a lot easier and you can have a great social experience,” Jacob said.

However, returning to 2019 levels of revenue is still expected to be tough.

Cineplex is suing Cineworld, a U.K. based theatre operator that was due to buy Cineplex for $2.8 billion.

Cineworld walked away from the deal on June 12, saying it had become aware of a material adverse effect and breaches by Cineplex, which has vehemently denied the accusations.

Meanwhile, local health rules have greatly reduced the number of moviegoers Cineplex can welcome at a time and the chain has had to pay for rose sanitization and the costs that come with physically distancing guests and protecting staff..

In Maritime provinces, Alberta and British Columbia, Jacob said audiences have been returning to theatres faster than elsewhere and in some places where Remembrance Day was a holiday, Cineplex saw a spike in attendance.

Those who made visits have seen few of the big blockbusters originally planned for the year because studios and distributors have been pulling new releases and rescheduling them for 2021, when they hope the virus will be more contained.

Christopher Nolan’s “Tenet” was one of the few new features moviegoers were treated to. Cineplex screened the film ahead of it being released to U.S. audiences — a rarity in the movie world.

One of the last major releases that has yet to be moved from this year is the sequel to “Wonder Woman,” which Jacob said he has been talking to Warner Bros about.

Some believe the studio will move its release until next year. If they do, Cineplex still has other movies coming like the Toronto International Film Festival’s People’s Choice Award winner “Nomadland” and “News of the World” starring Tom Hanks.

“When I look at 2021, I think holy crow, I am going to be going to the movie theatre every night,” Jacob said.

For those unwilling to visit a theatre during the pandemic, Cineplex has long offered home movie rentals and delivery of concession stand favourites like popcorn via Uber Eats or SkipTheDishes.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

CoronavirusMovies

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Mayor Walt Cobb waves from atop a tractor as he turns onto Oliver Street in the Daybreak Rotary’s annual Stampede Parade. Patrick Davies photo.
Lack of funding, volunteers has Daybreak Rotary bowing out of Williams Lake Stampede parade

Club learned this week it won’t be receiving local government funding, for the second year in a row

A nurse performs a test on a patient at a drive-in COVID-19 clinic in Montreal, on Wednesday, October 21, 2020. (THE CANADIAN PRESS/Paul Chiasson)
30 new COVID-19 cases, five more deaths in Interior Health

This brings the total number of cases to 7,271 since testing began

Williams Lake’s Brock Hoyer films a segment of the newly-released The Way Home in the city of Revelstoke. (Ryen Dunford photo)
Brock Hoyer stars in new snowbike film: The Way Home

The film is completely free and was released on YouTube on Jan. 22, 2021

The body of Kenneth Seymour Michell was discovered Jan. 14, 2021, behind a Williams Lake business a day after he was released by a judge on conditions. (Photo submitted)
Family looks for answers after Indigenous man dies by suicide following release from custody

System does not care about Indigenous peoples, says First Nations Leadership Council

FILE – A COVID-19 vaccine being prepared. (Olivia Sullivan/Sound Publishing)
B.C. seniors 80 years and older to get COVID vaccine details over next 2 weeks: Henry

Province is expanding vaccine workforce as officials ramp up age-based rollout

Dr. Bonnie Henry talk about the next steps in B.C.'s COVID-19 Immunization Plan during a press conference at Legislature in Victoria, B.C., on Friday, January 22, 2021. THE CANADIAN PRESS/Chad Hipolito
456 new COVID-19 cases in B.C., 2 deaths

Since January 2020, 78,278 have tested positive for the novel coronavirus in B.C.

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

A health-care worker prepares a dose of the Pfizer-BioNTech COVID-19 vaccine at a UHN COVID-19 vaccine clinic in Toronto on Thursday, January 7, 2021. (THE CANADIAN PRESS/Nathan Denette)
Vaccinating essential workers before seniors in B.C. could save lives: experts

A new study says the switch could also save up to $230 million in provincial health-care costs

The late Michael Gregory, 57, is accused of sexually exploiting six junior high students between 1999 and 2005. (Pixabay)
Former Alberta teacher accused of sexually assaulting students found dead in B.C.

Mounties say Michael Gregory’s death has been deemed ‘non-suspicious’

According to a new poll, a majority of Canadians want to see illicit drugs decriminalized. (THE ASSOCIATED PRESS)
Majority of Canadians think it’s high time to decriminalize illicit drugs: poll

More than two-times the B.C. residents know someone who died from an overdose compared to rest of Canada

Interior Health officially declared a COVID-19 outbreak at Creekside Landing in Vernon on Jan. 3, which was followed by the first death from the virus 10 days later. (Kaigo photo)
COVID outbreak over at Vernon care home

Creekside Landing cleared of coronavirus, despite additional death in last day

(Black Press Media file photo)
B.C. residents can reserve provincial camp sites starting March 8

B.C. residents get priority access to camping reservations in province

Two women were arrested in Nanaimo for refusing to wear masks and causing disturbance on a BC Ferries vessel. (File photo)
B.C. ferry passengers arrested and fined for disturbance, refusing to wear masks

Police said woman threatened their pensions in Feb. 21 incident aboard Nanaimo-bound boat

Most Read