Cineplex to reopen some Canadian theatres as coronavirus causes revenues to plunge

Posted June 30, 2020 9:03 am

Cineplex Inc. is reopening some of its theatres across Canada as the company struggles with the fallout of COVID-19 and the demise of its takeover deal.

The Toronto-based movie theatre company will open some theatres in British Columbia, Saskatchewan, Quebec, New Brunswick, Nova Scotia and Newfoundland on Friday.

READ MORE: Cineplex not requiring guests to wear masks when theatres reopen

The reopenings come as Cineplex vows to sue U.K.-based chain Cineworld PLC for calling off a $2.8-billion takeover of the company.

On Monday, Cineplex said the COVID-19 pandemic had a “material negative effect” on its operations and resulted in a $178.4-million loss in the first quarter.

Drive-in movies might make a comeback in our ‘new normal’
Drive-in movies might make a comeback in our ‘new normal’

The company lost $2.82 per diluted share for the three months ended March 31, compared with a loss of 12 cents per share or $7.36 million a year earlier.

Story continues below advertisement

Cineplex revenues tumbled to $282.8 million from $364.6 million, while attendance plunged to 10.7 million from nearly 15 million.

© 2020 The Canadian Press