Cineplex says it lost $100 million after being forced to close cinemas in Canada
Cineplex has been hit pretty hard by the economic downturn caused by COVID-19.
On Friday, the Toronto-based movie theatre company released its second quarter financial results which reveal it lost just about $100 million and saw 95 per cent less revenue.
While revenue totalled $438.9 million in the same quarter last year, it only came to $22 million this year.
President and CEO Ellis Jacob said in a statement on Friday that the company has taken steps to further their financial stability.
"To immediately mitigate the impact of the closure of our theatres and entertainment venues, we focused on reducing all expenses to the greatest extent possible," Jacob said.
"We also shifted our attention to plan for the safe return of our employees and guests and to strengthen Cineplex's financial position over the short and long term."
Due to the global pandemic, Cineplex had no choice but to temporarily lay off staff, reduce full-time employee salaries, and negotiate rent relief with landlords as theatres sat empty since March 16.
In the meantine, they relied on making money through their online store and food orders on Uber Eats and Skip the Dishes.
"While it is impossible to predict how long this crisis will last and how significant the impact will be on our business, Cineplex will continue to take the necessary steps to strengthen the financial position of our company and ensure a healthy future," Jacob said.
While movie theatres are re-opening across the country, the company has had to make some changes to the movie-going experience.
This includes reserved seating, limited audience sizes, and fewer food options at the concession stand. They've also reduced ticket prices with some costing only $5 and $3 on Tuesdays.
On top of all of this, their recent $2.8 billion deal in which Cineworld Group PLC was supposed to buy the company fell through. The matter is set to go to court in September 2021.
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