Cineplex CEO Bill Walker said he is optimistic about 2027 stability, citing box office results and a strong quarterly slate of major releases.
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Cineplex Inc.’s new chief executive says the theatre business has moved from recovery to a period of sustainable growth, pointing to box office performance and audience numbers at the company’s own locations.
Bill Walker made the comments on a call with analysts Friday, saying overall box office numbers recently exceeded 2019 levels and that audiences at Cineplex theatres have been strong. He also noted the industry faced major disruptions during and after the COVID-19 pandemic, including temporary closures and a further setback when twin Hollywood strikes reduced the number of new releases.
Walker said he feels “pretty optimistic,” adding that he has identified big studio releases slated for each quarter next year and expects Cineplex to be helped by both consistent theatrical windows and the possibility of unexpected hits. “There’s always going to be some surprises to the upside. There will be surprises to the downside in some of these films, and that is the nature of the business,” he said. He added that the “quantity of movies being released” and “the consistency of windows” are “really constructive as to how that's going to drive stability in 2027 and then looking even further into 2028 as well.”
Walker’s remarks came a little over a month into his tenure as CEO. He joined the Toronto-based company in September, taking over from Ellis Jacob.
The CEO said he could not provide an update on a review of strategic alternatives that Cineplex announced on the same day he was named chief executive, noting that the review could include options “really broad range of options,” including a potential sale. He said the company would not be able to provide an update on where things stand in the process or a specific timeline.
Cineplex’s latest results reported a quarter ended with a $23.8 million profit, which the company attributed largely to audiences drawn by “Spider-Man: Brand New Day” and “The Odyssey.” For the quarter ended Sept. 30, Cineplex reported third-quarter profit of 34 cents per diluted share, compared with a profit of $1.2 million or two cents per diluted share a year earlier.
For the same quarter, Cineplex reported revenue of $440.2 million, up from $348.9 million in the same quarter last year. Theatre attendance rose to 14.8 million people from 12.1 million, while box office revenue per patron increased to $14.54 from $13.23 and concession revenue per patron rose to $9.99 from $9.65.
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