The Force is with Cineplex as Star Wars boosts bottom line

The latest instalment in the Star Wars franchise helped to power Cineplex to record quarterly and full-year financial results.  

The Toronto-based theatre chain said Tuesday its fourth quarter net income was a best-ever $76.8 million, more than double what it was a year earlier.

Revenues in the quarter, which ended Dec. 31, jumped by almost 25 per cent to $407 million.

The entertainment company credited Star Wars: The Force Awakens for much of that boost. The movie debuted on Dec. 18 and quickly became one of the most popular movies the chain has ever shown.

The seventh instalment of the Star Wars franchise has gone on to become one of the highest-grossing films ever, with a worldwide box office tally of $2 billion US as of this past weekend.

Concession revenues in the quarter rose by 8.6 per cent to $5.58 per patron. With a record 20.4 million patrons in the quarter, there were a lot of profitable popcorn sales.

Blockbuster movies

Cineplex said its full-year profit was a record $134.2 million, up 76 per cent from 2014.

Total revenues for the year rose 11 per cent to $1.37 billion.

The theatre chain said its 2015 results benefited from a number of top-grossing films, including Jurassic World, The Avengers: Age of Ultron, Minions and Furious 7.  

Those four films, along with the latest Star Wars film, rank in the top 11 highest-grossing films of all time, Cineplex said.

Cineplex shares were up $2.46 to $49.14 in early afternoon trading on the TSX.

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