Cineplex (TSX:CGX) is based in Toronto and operates as an entertainment and media company in Canada and internationally. It boasts a monopoly on the Canadian cinema. Shares of Cineplex have climbed 8.4% in 2023 as of close on April 25.
Investors can expect to see this company’s first quarter fiscal 2023 earnings in the first half of May. However, its 2022 earnings and other developments should inject Canadian investors with optimism. Below, I want to look at two reasons to buy this stock right now.
A return to normal for Cineplex
This company has seen a return to profitability as Cineplex was able to open its doors for a full year for the first time since the beginning of the COVID-19 pandemic in the late winter of 2020. In fiscal 2022, Cineplex posted revenue growth of 93% to $1.26 billion. Meanwhile, adjusted EBITDA soared 320% to $251 million for the full year.
The theatre industry is on the rebound in 2023
The reopening in North America did not bring instant success for cinemas nor for the films that were released to a frazzled public. Fortunately, we have seen some big success stories over the past year. Avatar: The Way of Water raked in over $2 billion worldwide, further cementing James Cameron’s incredibly bankable reputation. Meanwhile, The Super Mario Bros. Movie has brought in nearly $450 million for the domestic take and $888 million internationally.
In May 2023, Cineplex could see a nice boost from releases like Fast X, The Little Mermaid live action remake, and Guardians of the Galaxy Vol. 3.
