Overview

• Canada cinema operator's Q4 revenue fell 1.8% yr/yr

• Adjusted EBITDA for Q4 declined 1.1% yr/yr

• Company completed sale of digital media division for C$70 mln

Outlook

• Cineplex expects 2026 film slate to include major tentpole releases

• Company plans to leverage strong 2026 film slate for strategic growth

• Sale of Cineplex Digital Media offers flexibility for debt reduction and share repurchases

Result Drivers

• PREMIUM EXPERIENCES - Premium formats accounted for 43.2% of total box office revenues, the highest since 2018, contributing to record BPP and CPP

• INTERNATIONAL FILMS - International films contributed 11.2% of total box office revenues, the highest share in Cineplex’s history

• DIGITAL MEDIA SALE - Sale of Cineplex Digital Media for C$70 mln provided funds for share repurchases and financial flexibility

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the leisure & recreation peer group is "buy"

• Wall Street's median 12-month price target for Cineplex Inc is C$13.50, about 36.2% above its February 10 closing price of C$9.91

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release: ID:nGNX6LsslD

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)