CGX: Q1/26 Results Below Forecast Due Mainly to Cineplex Media

研报英文原文证据摘录

CGX: Q1/26 Results Below Forecast Due Mainly to Cineplex Media

(+4.0%) due mainly to an increase in purchase incidence; and (iii) the film cost percentage was

54.5% versus our estimate of 53.5%. Reflecting ongoing box office momentum, Cineplex reported April box office revenues of

$60.0MM, up +17% YoY and representing 117% of 2025 levels.

• A soft quarter for Cineplex Media due mainly to the Olympics. Cinema Media revenues of $13.9MM (-18.9% YoY) were below

our estimate of $18.0MM with CMPP decreasing -30.9% to $1.41 driven by lower demand for in-theatre advertising with

advertising spend diverted to live sporting events (Winter Olympics), as well as a tougher YoY comp in the pharmaceutical

category. LBE revenues of $35.0MM (-8.1% YoY) were slightly below our estimate of $37.6MM with same store revenues

declining -5.6% due mainly to economic headwinds and shifts in discretionary spending. LBE store-level EBITDAaL margins were

25% (consistent with management's long-standing target and our forecast). Total Amusement revenues of $26.0MM (-8.9% YoY)

were slightly below our estimate of $28.6MM.

• Other notables from the quarter. (i) 464k shares were repurchased in Q1/26 for $5.0MM; and (ii) Scene+ members exceeded

15MM in Q1/26.

• Issues in focus for the 10:00AM ET conference call: (i) an update on the strength of the Canadian advertising market and extent

to which macro uncertainty is contributing to any renewed softness; (ii) the extent to which LBE same store revenue growth can

return to positive in 2026 given macro uncertainty and ongoing changes to discretionary spend and consumer behaviour; and

(iii) an update on strategic options for the company.

All values in CAD unless otherwise noted. Priced as of prior trading day's market close, EST (unless otherwise noted).