Overview

* Cineplex ( CPXGF ) Q3 revenue declines 8.7% yr/yr due to lower attendance

* Net income from continuing operations contrasts with prior yr loss

* Company sells digital media division to enhance financial flexibility

Outlook

* Company expects enhanced financial flexibility from sale of Cineplex Digital Media

* Cineplex ( CPXGF ) aims to reduce leverage and pursue strategic share repurchases

* Company committed to delivering consistent cash flow and long-term shareholder value

Result Drivers

* ATTENDANCE DECLINE - 9.1% drop in theatre attendance attributed to lack of blockbuster comparable to last year's 'Deadpool & Wolverine'

* PREMIUM EXPERIENCES - Premium experiences accounted for 44.7% of total box office revenue, highlighting continued demand

* INTERNATIONAL FILMS - International films contributed 13.6% of box office revenues, marking a record share for the third quarter

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 C$348.94

Revenue mln

Q3 EPS C$0.02

Q3 Net C$1.21

Income mln

Q3 C$73.05

Adjusted mln

EBITDA

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 ( CPXGF ) is C$14.00, about 10.3% above its November 5 closing price of C$12.56

* The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release:

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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.)