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1. Company Snapshot

1.a. Company Description

Cineplex Inc., together with its subsidiaries, operates as an entertainment and media company in Canada and internationally.It operates through four segments: Film Entertainment and Content, Media, Amusement and Leisure, and Location-Based Entertainment.The company engages in theatre exhibition and theatre food service activities.


It also provides alternative programming service; rents and sells movies in digital form; and operates cineplex.com, an entertainment site that offers streaming video, movie information, showtimes and ability to buy tickets online, entertainment news, and box office reports, as well as advertising and digital commerce opportunities.In addition, the company offers Cineplex mobile app for various devices; incorporates advertising mediums related to theatre exhibition, and digital place-based media that provides digital signage solutions; and designs, installs, maintains, and operates digital signage networks in various verticals, including digital out of home, quick service restaurants, financial institutions, and retailers.Further, it distributes and operates amusement, gaming, and vending equipment; and operates social entertainment destinations featuring gaming, entertainment, and dining under The Rec Room and Playdium names.


As of December 31, 2021, the company owned, leased, or had interest in 1,652 screens in 160 theatres, as well as 13 location-based entertainment venues in 6 provinces.Cineplex Inc.was founded in 1912 and is headquartered in Toronto, Canada.

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1.b. Last Insights on CGX

Cineplex Inc.'s recent performance was negatively impacted by the company's Q4 revenue miss despite reporting improved results. The company's revenue declined 4.2% year-over-year to CA$1.33b, primarily due to lower box office revenue. Despite strong food and beverage results, the box office decline weighed on the company's overall performance. Additionally, a decline in moviegoers and increased competition from streaming services are expected to continue to challenge Cineplex's business in the coming quarters."

1.c. Company Highlights

2. Cineplex's Q3 2025 Earnings: A Mixed Bag

Cineplex Inc.'s third-quarter 2025 financial performance revealed a revenue of $348.9 million, representing an 8.7% decrease from the prior year. Adjusted EBITDA was $33.3 million, down from $47.9 million in Q3 2024. The company's EPS came in at $0.02, significantly lower than the estimated $0.3133. The decline in revenue was largely attributed to a comparison against a strong Q3 2024. The box office per patron (BPP) was $13.23, a marginal increase of $0.04, while concession per patron (CPP) was $9.65, down 2% due to a Labor Day weekend promotion.

Publication Date: Nov -25

📋 Highlights
  • Box Office and Concession Per Patron:: BPP rose to $13.23 (+$0.04), CPP fell to $9.65 (-2%) due to promotions.
  • Premium Experiences Dominance:: 45% of Q3 box office came from premium formats, with top 3 films generating over 60% of their revenue via these formats.
  • International Cinema Growth:: Foreign films accounted for 13.6% of box office in Q3, up from 9.3% in 2024.
  • LBE Revenue Record:: Location-Based Entertainment revenue hit $34.6M, up 11.3% YoY with 3 new locations.
  • Cinema Media Growth:: Revenue rose 6.1% to $19.2M, driven by increased Showtime advertising demand.

Operational Highlights

The company's operational performance was marked by a diverse slate of high-performing titles, including the standout original horror film "Weapons," which topped the box office for four consecutive weeks in 2025. International cinema accounted for 13.6% of the box office in Q3, up from 9.3% last year. The company's Location-Based Entertainment (LBE) business continued to grow, with revenue reaching a third-quarter record of $34.6 million, up 11.3% year-over-year.

Revenue Streams

Cinema Media revenue for the quarter was $19.2 million, an increase of 6.1% compared to the prior year, driven primarily by increased demand for Showtime advertising. The company's overall revenue was impacted by the decline in box office revenue, but the growth in LBE and Cinema Media revenue provided some offset.

Valuation and Outlook

With a P/E Ratio of -12.64 and an EV/EBITDA of 10.48, the market appears to be pricing in a challenging near-term environment for Cineplex. However, the company's guidance for 2026 suggests a strong year with a more balanced distribution of product throughout the year, driven in part by Amazon's commitment to releasing close to a dozen movies. Analysts estimate revenue growth of 6.7% next year, which could provide a positive catalyst for the stock.

Capital Allocation

The company intends to allocate up to $18.5 million for opportunistic share repurchases using the proceeds from the sale of Cineplex Digital Media, with the remaining funds to be used for potential debt repayment or other corporate purposes. This move is expected to provide additional financial flexibility and support the company's continued focus on optimizing performance across its portfolio.

3. NewsRoom

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Calculating The Intrinsic Value Of Cineplex Inc. (TSE:CGX)

Dec -02

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Wicked: For Good Delivers Spellbinding Pre-Sales Ahead of Its Opening Weekend

Nov -21

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Creative Realities Closes Acquisition of Cineplex Digital Media

Nov -07

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Cineplex Completes Sale of Cineplex Digital Media

Nov -07

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Cineplex Inc (CPXGF) Q3 2025 Earnings Call Highlights: Navigating Revenue Declines with ...

Nov -06

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Cineplex Reports Third Quarter 2025 Results

Nov -06

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Is Now An Opportune Moment To Examine Cineplex Inc. (TSE:CGX)?

Nov -05

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Cineplex Community Day Returns November 15 Enjoy Free Movies and Gaming - and an Opportunity to Give Back!

Nov -03

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.62%)

6. Segments

Film Entertainment and Content

Expected Growth: 3.5%

Cineplex Inc.'s Film Entertainment and Content segment growth of 3.5% is driven by increasing demand for premium formats like 3D and IMAX, strategic partnerships with film studios, and expansion of its digital media network. Additionally, investments in cinematic experiences, such as VIP cinemas and recliner seating, are attracting a growing audience.

Location-based Entertainment

Expected Growth: 4.5%

Cineplex Inc.'s Location-based Entertainment segment growth of 4.5% is driven by increasing demand for immersive experiences, expansion of virtual reality gaming and esports, strategic partnerships, and investments in new attractions and amenities, such as escape rooms and restaurants, which enhance customer engagement and loyalty.

Media

Expected Growth: 3.8%

Cineplex Inc.'s Media segment growth of 3.8% is driven by increasing demand for digital out-of-home advertising, expansion of digital signage networks, and growth in cinema advertising revenue. Additionally, strategic partnerships and acquisitions have enhanced the company's media offerings, contributing to the segment's growth.

7. Detailed Products

Theatre Operations

Cineplex Inc. operates a chain of movie theatres across Canada, offering a range of films, including blockbuster releases and independent films.

Food and Beverage

Cineplex Inc. offers a variety of food and beverage options at its theatres, including popcorn, snacks, and meals.

Amusement and Leisure

Cineplex Inc. operates amusement and leisure facilities, including playdium, a chain of entertainment centres offering games, food, and activities.

Digital Media

Cineplex Inc. offers digital media services, including digital signage and advertising solutions.

Cineplex Store

Cineplex Inc. operates an online store, offering a range of merchandise, including movie-themed items and gift cards.

SCENE Loyalty Program

Cineplex Inc. operates the SCENE loyalty program, rewarding members for their purchases and activities.

8. Cineplex Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Cineplex Inc. faces moderate threat from substitutes as customers have alternative options for entertainment such as streaming services, video games, and outdoor activities.

Bargaining Power Of Customers

Cineplex Inc. has a low bargaining power of customers as individual customers have limited negotiating power, and the company has a diversified customer base.

Bargaining Power Of Suppliers

Cineplex Inc. faces moderate bargaining power of suppliers as it relies on a few major film studios for content, but has some negotiating power due to its large market share.

Threat Of New Entrants

Cineplex Inc. faces a low threat of new entrants as the industry has high barriers to entry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

Cineplex Inc. operates in a highly competitive industry with several established players, leading to a high intensity of rivalry among competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 102.12%
Debt Cost 3.95%
Equity Weight -2.12%
Equity Cost 17.91%
WACC 3.65%
Leverage -4807.59%

11. Quality Control: Cineplex Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Sinclair Broadcast Group

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Value: 7.2

Growth: 4.4

Quality: 4.5

Yield: 10.0

Momentum: 3.0

Volatility: 3.3

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Cineplex

A-Score: 5.2/10

Value: 8.5

Growth: 4.0

Quality: 5.0

Yield: 0.0

Momentum: 6.5

Volatility: 7.0

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Yield: 0.0

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Quality: 4.7

Yield: 0.0

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Quality: 3.3

Yield: 0.0

Momentum: 1.0

Volatility: 2.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

11.01$

Current Price

11.01$

Potential

-0.00%

Expected Cash-Flows