Q2 2026 Cineplex Inc Earnings Call Transcript
Key Points
- Record second-quarter revenue of $383.7 million, up 9.8% year-over-year, driven by a 9.3% increase in theater attendance.
- Adjusted EBITDA grew 20.4% to $40.8 million, reflecting strong operating leverage and improved cash flow generation.
- Record per-patron metrics: box office revenue per patron hit $13.91 and concession revenue per patron reached $10.26, both all-time quarterly highs.
- Cineplex Pictures achieved its highest-grossing film ever with 'Michael', and the upcoming slate includes highly anticipated titles like 'The Hunger Games: Sunrise on the Reaping' and 'Godzilla Minus Zero'.
- Strong momentum in premium formats and merchandise, with merchandise sales up 45% year-over-year and record-breaking results in UltraAVX, 4DX, ScreenX, and VIP.
- Improved balance sheet with leverage down 1.5 turns over the past year and a half, positioning the company to achieve its target leverage ratio of 2.5-3.0x in the near term.
- Successful expansion of the Scene+ loyalty program with Shell's nationwide launch, enhancing member engagement and data opportunities.
- Location-based entertainment (LBE) segment revenue declined 3.7% year-over-year, with adjusted store-level EBITDA margin down to 12.2% from 17.5%, due to macroeconomic headwinds and increased competition.
- Media segment revenue growth was modest at 4.4%, with cinema media per patron declining to $1.59 from $1.67, impacted by a tough comparison against elevated pharmaceutical advertising spend.
- G&A expenses increased to $24.2 million from $21.9 million, driven by higher LTIP costs and timing of technology initiatives, including a one-time $6 million hit for retirement-eligible employees.
- The Scene+ joint venture incurred one-time costs related to the Shell launch, impacting quarterly profitability.
- Film rental costs are expected to rise as box office performance improves, potentially pressuring margins.
- LBE business faces near-term challenges from discretionary spending pressures and new competitive entries in select successful locations.
Good day and thank you for standing by. Welcome to the Cineplex second-quarter 2026 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded.
I'd now like to hand the conference over to Mahsa Rejali. Please go ahead.
Good morning, everyone. I would like to welcome you to Cineplex's second quarter 2026 earnings release conference call. I'm Mahsa Rejali, Vice President, Corporate Development and Investor Relations at Cineplex.
Joining me today are Ellis Jacob, our President and Chief Executive Officer; and Gord Nelson, our Chief Financial Officer. I'll remind you that certain statements being made are forward-looking and subject to various risks and uncertainties. Such forward-looking statements are based on management's beliefs and assumptions regarding information currently available.
Actual results may differ materially from those expressed in the forward-looking statement. Information regarding
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