Cineplex is increasing its focus on video arcades

Cineplex Inc. CEO Ellis Jacob is making bold moves to boost revenues in the face of a challenging theatrical landscape. Despite a one percent increase in box office revenue to $125.1 million, the industry saw a more than five percent drop in North American box office sales. In response, Jacob is focusing on expanding the company’s “location-based entertainment” (LBE) offerings, such as video arcades, virtual reality attractions, and bowling options.

Cineplex currently operates 13 LBE venues under the Playdium, Rec Room, and Junxion brands, with plans to launch three more in the fourth quarter. Jacob aims to grow the number of locations to 30 across Canada, potentially doubling annual adjusted earnings from LBE to $75 million. He highlighted the success of the new Junxion brand, which combines a movie theatre with arcade games, creating a unique entertainment experience for guests.

Despite recent challenges, including the sale of arcade game distributor Player One Amusement Group, Cineplex reported a $5.2 million profit for the first quarter. The company is also focused on reducing its long-term debt and improving its financial position. Jacob remains optimistic about the future of cinema, emphasizing the importance of premium experiences and international films in attracting audiences.

With a focus on innovation and diversification, Cineplex is navigating the changing landscape of the entertainment industry and positioning itself for long-term success. Jacob’s strategic vision and commitment to enhancing the guest experience are driving the company forward in a challenging market.