Cineplex (TSX:CGX) is the largest cinema operator in Canada. The company faced an existential crisis during the worst throes of the COVID-19 pandemic as movie theatres were forced to close their doors. This meant that Cineplex had no revenue coming in for months on end. It was forced to do some creative accounting and sell-off some major assets to gain breathing room.
Fortunately, the traditional cinema has experienced a solid rebound so far in 2022. The Batman has raked in over $365 million in the domestic box office since its release on March 4. Meanwhile, Spider-Man: No Way Home generated over $230 million in the New Year after a strong start in its December 17, 2021 debut.
The company released its fourth quarter and full year 2021 results on February 11, 2022. In Q4 2021, total revenues jumped 471% to $300 million. Meanwhile, theatre attendance rose to 10.2 million compared to 0.8 million in the fourth quarter of 2020. For the full year, adjusted EBITDA rose to $59.9 million compared to a loss of $55.9 million in the prior year. Moreover, box office and concession revenues per patron rose 15% and 13%, respectively, from 2020.
Shares of this top TSX stock are trading in favourable value territory compared to its industry peers. Cineplex boosters should also be encouraged by the slip in subscribers for top streamers like Netflix. This may mean that consumers will be more willing to spend disposable income on the cinema in the months ahead.