Exhibition giant Cineplex Galaxy Income Fund continues to ring up record box office during the economic downturn. The theater chain recorded third-quarter earnings up 11% to $20.4 million, as total revenues rose 7.7% to $257.5 million with lift from 3D titles like Harry Potter and the Half-Blood Prince and Ice Age: Dawn of the Dinosaurs.
Cineplex CEO Ellis Jacob told analysts that the latest results flow from a business plan that includes squeezing revenue from loyalty programs, alternative programming like live opera and theater beyond Hollywood titles, concession sales and screen-based advertising.
The $156 million in ticket receipts Cineplex posted to Sept. 30 was the income fund’s highest-ever quarterly box-office take. The chain reported a 4.4% increase in attendance in the third quarter, totaling 18.8 million tickets.
Besides the escapist appeal of Hollywood films during the economic slump, the big expansion at Cineplex is coming from its 3D theaters, including Imax screens, which enable a premium to be paid on ticket prices.
Jacob also told analysts that the exhibitor expects to have updated 3D technology in 25% to 30% of its screens by the end of 2010, as Cineplex’s digital expansion continues to outpace that of the U.S. industry.