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Highlights
- Around the time of opening bell, Cineplex stock was up by eight per cent on Friday, May 13.
- The Canadian movie theatre chain has announced that its box office revenue approached pre-pandemic levels in Q1 FY2022.
- The surge came as the company welcomed 6.7 million guests to its theatres in this quarter.
Cineplex (TSX:CGX) stock is soaring, and there is a reason for that! The Canadian movie theatre chain has just announced that its box office revenue approached pre-pandemic levels in the first quarter of fiscal 2022.
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The surge came as the company welcomed 6.7 million guests to its theatres and noted a box office revenues per patron (BPP) of C$ 12 during Q1 FY2022.
Around the time of opening bell, Cineplex stock was up by a significant eight per cent on Friday, May 13.
What else should investors learn about Cineplex's performance in the latest quarter? Let’s see.
Cineplex Inc (TSX: CGX) Q1 FY2022 results
Cineplex Inc recorded total revenues of C$ 228.7 million in Q1 FY2022, marking a notable growth of 452.3 per cent year-over-year (YoY). Its theatre attendance considerably improved to 6.7 million in the latest quarter compared to 0.4 million a year ago, primarily due to eased COVID restrictions.
With substantial quarterly revenue growth, the entertainment company minimized its net loss by 52.9 per cent YoY to C$ 42.2 million in the latest quarter. Its cash used in operating activities also reduced by 84.7 per cent YoY to C$ 5.4 million in Q1 FY2022.
Cineplex's concession revenues per patron (CPP) increased by 44.1 per cent to C$ 8.82.
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Cineplex's stock performance
Having closed at C$ 11.42 on May 12, stocks of Cineplex were trading at C$ 12.38 at 10:50 AM EST on Friday. This is an important detail to note as the entertainment stock has grown by less than a per cent in a year.
Cineplex's Relative Strength Index (RSI), which suggests whether a stock is oversold or overbought, improved to 44.7 on May 13, according to the data collected from EODHD/Others.
Bottomline
Cineplex has reported YoY revenue growth across its divisions, including film and entertainment content, media, and amusement and leisure, in Q1 2022. Considering its latest quarterly results, this small-cap company is could continue to emerge from the pandemic setbacks if market conditions prevail.
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
