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

RNG plant
Construction on ground-breaking RNG plant in Fruitvale set to go in spring 2021

REN Energy partners with Calgary engineering firm for innovative West Kootenay gas plant

Terry Miller
Rossland voters select Terry Miller as new councillor

City of Rossland releases results of advance voting and final voting day of council byelection

This picture of Taghum resident Marc Savard was taken in February when he first spoke to the Nelson Star and little was known about the virus that had shut him out of his job in Wuhan, China. Photo: Tyler Harper
VIDEO: Once an outlier, Nelson man’s COVID-19 experience now typical

Savard was living in Wuhan, China, when the pandemic began

COVID-19. (Image courtesy CDC)
47 new COVID-19 cases in Interior Health region

1,538 total cases, 399 are active, ten in hospital

Communities like Nakusp are grappling with the challenge of hooking high-speed internet up at individual homes. File photo
‘Last mile’ debate a Gordian knot in Slocan Valley’s fibre-optic cable plans

How do you bring high-speed internet not just to communities, but individual homes?

Idyllic winter scenes are part of the atmosphere of the holiday season, and are depicted in many seasonal movies. How much do you know about holiday movies? Put your knowledge to the test. (Pixabay.com)
QUIZ: Test your knowledge of holiday movies and television specials

The festive season is a time for relaxing and enjoying some seasonal favourites

Black Press Media and BraveFace have come together to support children facing life-threatening conditions. Net proceeds from these washable, reusable, three-layer masks go to Make-A-Wish Foundation BC & Yukon.
Put on a BraveFace: Help make children’s wishes come true

Black Press Media, BraveFace host mask fundraiser for Make-A-Wish Foundation

A man walks by a COVID-19 test pod at the Vancouver airport in this undated handout photo. A study has launched to investigate the safest and most efficient way to rapidly test for COVID-19 in people taking off from the Vancouver airport. The airport authority says the study that got underway Friday at WestJet’s domestic check-in area is the first of its kind in Canada. THE CANADIAN PRESS/HO, Vancouver Airport Authority *MANDATORY CREDIT*
COVID-19 rapid test study launches at Vancouver airport for departing passengers

Airport authority says that a positive rapid test result does not constitute a medical diagnosis for COVID-19

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

114 Canadians were appointed Nov. 27 to the Order of Canada. (Governor General of Canada photo)
Indigenous actor, author, elder, leaders appointed to Order of Canada

Outstanding achievement, community dedication and service recognized

Follow public health recommendations, says Interior Health as COVID-19 cases continue to climb in Revelstoke. (Image courtesy CDC)
Revelstoke positive COVID cases grows to 29

Interior Health announced a cluster in the community on Nov. 26

Screenshot of Pastor James Butler giving a sermon at Free Grace Baptist Church in Chilliwack on Nov. 22, 2020. The church has decided to continue in-person services despite a public health order banning worship services that was issued on Nov. 19, 2020. (YouTube)
2 Lower Mainland churches continue in-person services despite public health orders

Pastors say faith groups are unfairly targeted and that charter rights protect their decisions

A big job: Former forests minister Doug Donaldson stands before a 500-year-old Douglas fir in Saanich to announce preservation of some of B.C.’s oldest trees, July 2019. (B.C. government)
B.C. returning to ‘stand-alone’ forests, rural development ministry

Horgan says Gordon Campbell’s super-ministry doesn’t work

Peter Wilson, left, and Micah Rankin, right, formed the Special Prosecutor team that was tasked with reviewing and litigating charges stemming from the Bountiful investigation. Trevor Crawley photo.
End of Bountiful prosecution wraps up decades of legal battles

Constitutional questions had to be settled before a polygamy prosecution could move forward

Most Read