Cineplex Q4 profit down from year ago due in part to Cineworld deal costs

Cineplex Q4 profit down from year ago due in part to Cineworld deal costs
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TORONTO — Cineplex Inc. reported its fourth-quarter profit fell compared with a year ago due in part to costs related to the takeover of the movie theatre company by U.K.-based Cineworld PLC in a deal valued at $2.8 billion including debt.

The Canadian company says it earned $3.5 million or six cents per diluted share for the quarter ended Dec. 31 compared with a profit of $27.2 million or 43 cents per share in the same quarter a year earlier.

Revenue totalled $443.2 million, up from $427.8 million.

For its full year, Cineplex says it earned $28.9 million or 46 cents per diluted share on nearly $1.67 billion in revenue. The result compared with a profit of $77 million or $1.22 per diluted share on $1.61 billion in revenue in 2018.

Cineworld reached a friendly deal to buy Cineplex in December for $34 per share in cash.

Cineplex shareholders overwhelmingly approved the offer Tuesday.

This report by The Canadian Press was first published Feb. 12, 2020.

Companies in this story: (TSX:CGX)

The Canadian Press

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