Cineplex (CGX) stock rose 7.28% to $13.55 per share as the company reported that all its 172
movie theatres and entertainment venues in Canada are reopened for the first time since the
pandemic hit two years ago.
Cineplex said that all its venues are now operating at full capacity for the first time since COVID-
19 restrictions were first imposed in March 2020.
After having its venues completely shutdown in the initial months of the pandemic, the company
has navigated through a myriad of government-mandated restrictions including reduced
capacity limits, bans on serving snacks and drinks, and renewed lockdowns.
The theatre chain was also dealt a series of blows on the blockbuster front as numerous studios
delayed releases of major films while other blockbuster movie titles skipped theatres altogether
to go straight to streaming services during the pandemic.
In addition to the restrictions, Cineplex faced a legal battle with British theatre chain Cineworld
(CINE), which announced it planned to buy Cineplex in late 2019, only to walk away from that
proposal in June 2020.
Cineplex was ultimately awarded $1.24 billion in damages by an Ontario court amid a dispute
over how the deal fell apart. Cineworld is appealing the legal decision.
Cineplex also reported that its box office revenue this past weekend exceeded pre-pandemic
2019 levels for the first time in two years with the release of the film “Fantastic Beasts: The
Secrets of Dumbledore.”
In its latest financial release this February, Cineplex reported a $21.8 million net loss in its fiscal
fourth quarter, which covered the three months leading up to December 21, 2021, an
improvement from the $230 million loss it reported during the same period a year ago.
