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

Just Posted

From left: Thomas Kuecks, David Lane, John Ivison, Denis Berger, Rod Gray, and James Kuecks are Cabin Fever. Catch their performance on the Cowichan Performing Arts Centre website. (Ashley Foot photo)
A&E column: Music Festival winners, CVAC awards, and Cabin Fever

The latest from the Cowichan Valley arts and entertainment community

BC Green Party leader and Cowichan Valley MLA Sonia Furstenau introduced a petition to the provincial legislature on Thursday calling for the end of old-growth logging in the province. (File photo)
Cowichan Valley MLA Furstenau introduces old-growth logging petition

BC Green Party calls for the end of old-growth logging as protests in Fairy Creek continue

The city-owned lot at 361 St. Julien St., which has been home to a temporary homeless site for more than a year, will be sold and plans are to build a three-storey mixed-use development there, Peter de Verteuil, Duncan CAO explained at a recent council meeting. (File photo)
New development planned for homeless site in Duncan

Lot on St. Julien Street would see three-storey building

Historian and longtime Citizen columnist T.W. Paterson photographs the historical wreckage of a plane on Mount Benson. Paterson recently won an award from the British Columbia Historical Foundation. (Submitted)
Cowichan’s Tom W. Paterson wins award for historical writing

British Columbia Historical Federation hands Recognition Award to local writer

This electric school bus is the newest addition to the Cowichan Valley School District’s fleet. (Submitted)
Editorial: New electric school bus good place to start

Changing public transit like buses to electric really is important.

People line up to get their COVID-19 vaccine at a vaccination centre, Thursday, June 10, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
Vaccines, low COVID case counts increase Father’s Day hope, but risk is still there

Expert says people will have to do their own risk calculus before popping in on Papa

Greater father involvement in the home leads to improved childhood development and increased marital satisfaction, says expert. (Black Press Media file photo)
Vancouver Island researcher finds lack of father involvement a drag on gender equality

Working women still taking on most child and household duties in Canada: UVic professor

FILE – A science class at L.A. Matheson Secondary in Surrey, B.C. on March 12, 2021. (Lauren Collins/Surrey Now Leader)
Teachers’ union wants more COVID transmission data as B.C. prepares for back-to-school

BCTF says that details will be important as province works on plan for September

Provincial health officer Dr. Bonnie Henry outlines B.C.’s COVID-19 restart plan, May 25, 2021, including larger gatherings and a possible easing of mandatory masks on July 1. (B.C. government photo)
B.C. records 120 new COVID-19 cases, second vaccines accelerating

Lower Pfizer deliveries for early July, Moderna shipments up

A Heffley Creek peacock caught not one - but two - lifts on a logging truck this month. (Photo submitted)
Heffley Creek-area peacock hops logging trucks in search of love

Peacock hitched two lifts in the past month

The Calgary skyline is seen on Friday, Sept. 15, 2017. THE CANADIAN PRESS/Jeff McIntosh
2 deaths from COVID-19 Delta variant in Alberta, 1 patient was fully immunized

Kerry Williamson with Alberta Health Services says the patients likely acquired the virus in the hospital

The first suspension bridge is the tallest in Canada, with a second suspension bridge just below it. The two are connected by a trail that’s just over 1 km. (Claire Palmer photo)
PHOTOS: The highest suspension bridges in Canada just opened in B.C.

The Skybridge in Golden allows visitors to take in views standing at 130 and 80 metres

B.C. Premier John Horgan leaves his office for a news conference in the legislature rose garden, June 3, 2020. (B.C. government photo)
B.C. premier roasted for office budget, taxing COVID-19 benefits

Youth addiction law that triggered election hasn’t appeared

BC Ferries’ newest Island Class vessel is experiencing an issue with one of its thrusters off the Algerian coast. Photo courtesy patbaywebcam.com.
BC Ferries newest vessel having mechanical issues in Mediterranean

Island 4 will be repaired in Spain before crossing Atlantic

Most Read