Cineplex (CGX) Q4 2024 earnings summary

Executive summary

• Q4 2024 achieved record box per person ($13.26) and concession per person ($9.41), driven by premium experiences and strong film slate.

• Attendance increased 60.1% year-over-year in Q4, with total revenue up 15.1% to $362.7 million and adjusted EBITDAaL up 66.6% to $40.3 million.

• Opened three new Location-Based Entertainment venues and a new theatre, supporting diversification and market presence.

• Media revenues surged, with digital place-based media revenue up 70.2% year-over-year in Q4 and expansion into over 90 shopping destinations.

• Loyalty and subscription programs expanded, with Scene+ surpassing 15 million members and CineClub exceeding 180,000 members.

Financial highlights

• Q4 consolidated EBITDAaL margin rose to 11.1% from 7.7% in the prior year.

• Q4 box office revenue rose 19.3% to $147.7 million; food service revenue up 17.7% to $104.9 million.

• Media revenue increased 25.7% year-over-year to $33.6 million; digital media revenue up 70.2% year-over-year.

• Adjusted EBITDAaL for Q4 was $40.3 million (11.1% margin); adjusted free cash flow was $20.3 million, up from negative $1.0 million year-over-year.

• Full-year 2024 revenue was $1.33 billion; adjusted EBITDAaL $93 million (7.0% margin); net loss from continuing operations $106 million due to a Competition Tribunal penalty.

Outlook and guidance

• 2025 expected to be a strong year with a robust film slate, including major franchise releases and international titles.

• Net CapEx for 2025 projected at approximately $65 million, reflecting carryover from late 2024 openings.

• Free cash flow expected to exceed $100 million, with FCF yields between 13.2% and 19.7%.

• Digital media network expected to continue growing, though at a more moderate pace than 2024.

• Minimum wage increases anticipated to be around 4% aggregate, with technology leveraged to manage labor costs.