Agoracom

Higher summer movie attendance helped Cineplex Entertainment LP, Canada’s biggest cinema chain, post a 166 per cent profit jump and has given its executives confidence that in-theatre advertising will see more growth

Recent initiatives mark the gradual shift in focus that Cineplex has been taking over the past few years. It’s putting less emphasis on raising ticket prices and more on encouraging customers to enter its theatres.

In the latest quarter, attendance grew by 24.4 per cent to 19.1 million, up from 15.4 million. That tally will influence advertising rates for 2008.

Net income in the period reached $24.8 million, compared with $9.3 million a year earlier, and the trust’s distributable cash per unit increased to 75 cents from 46 cents. Advertising on movie screens rose 15 per cent to $455.7 million in 2006, while off-screen ad revenues were also up 15 per cent to $38.3 million. This is all positive news for RPS and their upcoming financials should reflect these positive trends.