Cineplex TSE: CGX said its first-quarter 2026 results improved meaningfully from the prior year, helped by stronger movie attendance, higher premium-format revenue and record first-quarter per-patron spending.
President and Chief Executive Officer Ellis Jacob said the quarter “built on the momentum” across the theatrical industry, with attendance and box office rising year-over-year. He said Cineplex delivered its highest first-quarter revenue since 2019 and recorded first-quarter highs in several operating metrics.
“When there is quality, consistency, and breadth in the film slate, theatrical doesn't just perform well, it creates unforgettable moments that bring Canadians together,” Jacob said.
Attendance and Box Office Drive Revenue Growth
Chief Financial Officer Gord Nelson said total revenue for the quarter was CAD 291 million, up 15.6% from CAD 251.7 million in the first quarter of 2025. Theater attendance rose 17.3% to 9.8 million guests, an increase of 1.5 million guests from the prior year.
Consolidated adjusted EBITDA was CAD 4.1 million, compared with a loss of CAD 10.7 million a year earlier. Nelson said the improvement reflected higher attendance and stronger per-patron metrics.
- Box office revenue rose 25% year-over-year to CAD 127.4 million.
- Box office revenue per patron reached a first-quarter record of CAD 12.94, up 6.6%.
- Theater food service revenue increased 22.5% to CAD 93.9 million.
- Concession revenue per patron reached a first-quarter record of CAD 9.54, up 4.5%.
- Premium formats accounted for 38.2% of box office revenue, up from 35.6% last year.
Nelson said the company benefited from the operating leverage in its exhibition business, noting that theater payroll and operating expenses grew at a slower rate than attendance and revenue. Segment adjusted EBITDA for film entertainment and content was CAD 8.9 million, compared with a loss of CAD 12.4 million in the prior-year period.
Film Slate Strength Spans Originals, Franchises and International Content
Jacob pointed to a broader first-quarter film slate that included original, franchise and international titles. He said five films generated more than CAD 100 million in domestic box office during the quarter, compared with two films in the first quarter of the prior year.
Among original films, Jacob highlighted Project Hail Mary, which he said became Amazon MGM’s highest-grossing release of all time and the studio’s first film to surpass CAD 300 million in domestic box office. He said about two-thirds of the film’s first-quarter box office at Cineplex came from premium experiences, with Cineplex capturing almost 10% of total domestic revenue.
Jacob also cited Pixar’s Hoppers and GOAT as examples of demand for original animated family films, while franchise films including Scream 7, Avatar: Fire and Ash and Zootopia 2 contributed to the quarter. Films released in 2025 accounted for 30% of Cineplex’s first-quarter box office, which Jacob said underscored the value of extended theatrical runs.
International programming represented about 13% of first-quarter box office, more than double the domestic average, according to Jacob. He said Dhurandhar: The Revenge became the highest-grossing Hindi-language film in North American history and the first to surpass CAD 25 million domestically, with Cineplex capturing more than 30% of the film’s total box office.
Media Weakens, Location-Based Entertainment Holds Margins
Cineplex’s media segment declined in the quarter. Nelson said media revenue fell 18.9% year-over-year to CAD 13.9 million, reflecting lower in-theater advertising demand as spending shifted toward the 2026 Winter Olympics and a tough comparison with elevated pharmaceutical advertising in the prior year.
Media adjusted EBITDA was CAD 9.6 million, down from CAD 12.9 million a year earlier. In response to an analyst question, Nelson said roughly CAD 2.2 million of the CAD 3.2 million year-over-year decline was related to reduced pharmaceutical spending. He said Cineplex does not expect the FIFA World Cup to have the same impact as the Olympics and expects media performance to grow in relation to attendance growth if attendance continues to rise.
Location-based entertainment revenue was CAD 35 million, down 8.1% year-over-year. Nelson said same-store revenue excluding 2024 new builds declined 5.6%, reflecting broader economic headwinds. However, adjusted store-level EBITDA margin remained at Cineplex’s targeted 25%, supported by labor optimization and operating efficiencies. Segment adjusted EBITDA was CAD 7.2 million, compared with CAD 7.7 million in the prior year.
Jacob said Cineplex expects the FIFA World Cup to drive demand at its locations this summer and noted that a new Playdium location at Vaughan Mills is expected to open in June 2026.
Liquidity, Capital Allocation and Legal Update
Cineplex ended the quarter with CAD 77.9 million in cash and no drawings under its CAD 100 million revolving credit facility. Nelson said the company completed an amendment extending the maturity of its bank credit agreement to September 2028 or March 2029, depending on the status of its secured notes.
Net capital expenditures were CAD 6.7 million in the quarter, including about CAD 3 million related to the Vaughan Mills Playdium project. Cineplex maintained its full-year capital expenditure guidance of approximately CAD 50 million.
Nelson said Cineplex’s capital allocation priorities remain maintenance spending, balance sheet strengthening, shareholder returns through buybacks or dividends, and selective growth investments. During the quarter, the company repurchased about CAD 5 million of common shares for cancellation under its normal course issuer bid.
Jacob also addressed the company’s online booking fee case, saying the Federal Court of Appeal upheld the Competition Tribunal’s decision regarding the presentation of the fee. He said Cineplex “respectfully disagree[s]” with the decision and has filed an application for leave to appeal to the Supreme Court of Canada. The company has been granted an interim stay related to payment of the administrative monetary penalty and costs pending the Supreme Court’s decision on whether to hear the appeal.
Management Points to Stronger Theatrical Outlook
Jacob said momentum from the first quarter has continued into the second quarter, with The Super Mario Galaxy Movie delivering the largest opening of the year so far and the highest-grossing Easter weekend in Cineplex history. He said April box office increased 17% over the prior year, and second-quarter box office to date was up 23%.
Management also emphasized longer theatrical windows as a positive trend. Jacob cited commitments from studios including Universal and Paramount for windows of at least 45 days, with Sony and Disney already beyond that threshold. He also noted Netflix’s planned wide theatrical release for an upcoming Narnia film in 2027 with a 49-day exclusive window.
In response to an analyst question about a media report on a potential sale, Jacob said Cineplex does not comment on rumors. “Our focus now is to strengthen the company, the balance sheet, and enjoy the product as we move forward through the 2026 and 2027 year,” he said.
Jacob also said the CEO search process is underway, with the board considering both internal and external candidates.
About Cineplex TSE: CGX
Cineplex is a diversified media company that operates chains of movie theaters. The company has four reporting segments: film entertainment and content; media; amusement and leisure; and location-based entertainment. The film entertainment and content segment includes revenue from theater attendance. The media segment includes cinema media and digital place-based media operations. The amusement and leisure reporting segment manages the operation and distribution of gaming and vending equipment. Formerly housed in the amusement and leisure segment, the location-based entertainment business derives revenue from entertainment restaurant chains like The Rec Room and Playdium.
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