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Aug 2, 2017

Cineplex posts profit miss in Q2 on attendance drop

No plans to accelerate efforts to diversify revenue mix: Cineplex CEO

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TORONTO - Cineplex Inc. (CGX.TO) says it earned $1.4 million in its latest quarter, down from a year ago, even as its revenue improved.

The movie theatre company says the profit amounted to two cents per diluted share for the quarter ended June 30 compared with a profit of $7.2 million or 12 cents per diluted share a year ago.

Revenue improved to $364.1 million, up from $338.0 million in the same quarter last year.

Cineplex chief executive says the growth in revenue was due primarily to higher amusement revenue due to the company's growth and diversification.

Amusement revenue improved to $45.7 million compared with $24.6 million a year ago, boosted by the company's acquisitions of Tricorp Amusements Inc. and SAW last year and Dandy Amusements International Inc. earlier this year.

Box office revenue totalled $170.7 million, up from $166.7 million, while attendance slipped to 16.5 million compared with 16.9 million a year ago. Food service revenue grew to $101.4 million compared with $96.8 million, while media revenue fell to $36.6 million from $40.2 million in the same quarter last year.