You can't control the summer blockbusters, but you can control what you do with them
As of spring 2020, it caused chaos in the cinema industry for about two years. Canada's largest cinema operator, Cineplex, was forced to close its doors in March 2020, suffering significant losses. Fortunately, the company survived the storm. Now, in 2023, the landscape looks much brighter for Cineplex and the broader North American cinema market.Today I want to explore the current summer blockbuster climate and discuss how investors should respond to it. Let's go for it.
Here's why Barbenheimer could be a turning point for cinema
On July 21, audiences flocked to theaters for the debut of both Barbie and Oppenheimer. The two summer blockbusters turned into the top six shows at the global box office. Barbie, the Margot Robbie-led fantasy comedy, has grossed more than $1.1 billion worldwide. Meanwhile, Oppenheimer has swallowed over $640 million worldwide at the time of writing.
The two films represent a departure from what box office monitors have been used to for a decade or so — the dominance of largely Disney-led superhero movies and established sequels like the Star Wars franchise. The success of riskier genre films like Barbie or historical epics like Oppenheimer could inspire industry leaders to shake things up in the coming quarters.
Should this potential strategic shift prompt investors to bet on traditional cinema again? It's not an outrageous proposition, especially when the streaming space is oversaturated. Additionally, the ongoing WGA and SAG-AFTRA strike is responsible for many of the stickier disagreements in the environment created by the rise of streaming services.
How did Cineplex do when the box office boomed?
Shares of Cineplex were down slightly month over month since Tuesday, August 15th. Meanwhile, this top Canadian cinema is still growing by 12% so far in 2023. Its shares fell by 19% year-to-date. time. Investors can see more of its recent performance using the interactive price chart below.
Should investors be happy with its recent performance?
The company released its earnings for the second quarter (Q2) of fiscal 2023 on August 10. Total revenue rose 20% year-over-year to $423 million. Meanwhile, Cineplex posted records for box office revenue per patron of $12.84 and concessions revenue per patron of $9.21. Theater attendance also climbed 15% to 12.8 million.
Cineplex posted a 32% increase in revenue to $764 million in the first six months of fiscal 2023. Meanwhile, cinema attendance also increased by 27% to 22.5 million. EBITDA means earnings before interest, taxes, depreciation and amortization. The aim of the measure is to provide a clearer picture of the company's profitability. Cineplex posted Q2 adjusted EBITDA growth of 31% to $102 million.
Why I'm buying Cineplex and betting on a movie revival
Overall, investors should be very pleased with the second quarter, which illustrated a recovery in the broader film industry. Cineplex is in a great position to take advantage of the continued rebound.You'll want to hear it before you consider Cineplex.
Our research team just revealed the top 5 stocks for investors to buy in July 2023, and Cineplex was not on the list.Motley Fool Stock Advisor Canada, an online investment service they've been running for nearly a decade, is beating the TSX by 29 percentage points. And right now, he thinks there are 5 stocks that are better to buy.
Summer is a time of relaxation, sunshine and of course the much-anticipated blockbuster movies hitting the screens. While you may not have control over the movies themselves, you do have the ability to shape your own experience and get the most out of this exciting movie season. In this article, we'll explore how you can take care of your summer moviegoing experience and make it memorable, regardless of the movies that are playing.
Accept the Buzz
Every summer, the film industry is stirred up by a selection of highly anticipated blockbusters. These films often come with massive marketing campaigns that make it difficult to escape their influence. Instead of resisting the buzz, embrace it. Stay up to date with the latest releases by subscribing to movie newsletters, following movie news websites, and reaching out to movie buffs on social media platforms. Staying informed allows you to participate in conversations, share your thoughts, and build excitement for the movies that interest you most.
Plan ahead
With so many movies hitting theaters during the summer, planning ahead is essential. Take control of your summer movie experience by making a plan. Find release dates for movies you're excited about and mark them on your calendar. This proactive approach ensures you don't miss out on any potential cinematic gems. By planning your movie outings in advance, you can avoid disappointment and secure the best seats for the shows you want to attend.
Create your own movie marathon
While blockbusters get most of the attention, don't forget smaller films that often go unnoticed. Take control of your movies by choosing your own movie marathon. Mix genres including indie, documentaries and classics. Hosting a movie night at home or hosting a backyard screening can be a fun and unique way to experience cinema the way you want it
Manage expectations
High expectations can sometimes lead to disappointment, especially if a much hyped blockbuster doesn't meet your personal preferences. Take control of your emotions by managing your expectations. Remember that everyone has different tastes and what may be a hit with one person may not resonate with another. Approach each film with an open mind and you'll likely find elements to enjoy even if the film doesn't live up to the hype.
Join the discussions after the movie
The summer movie season is an excellent opportunity to engage in meaningful conversations with friends, family and fellow moviegoers. After watching a movie, take control of your experience by starting discussions. Share your thoughts, opinions and interpretations of the film. This will not only enrich your experience, but also allow you to connect with others who may have different perspectives.
While you may not have control over which movies become summer blockbusters, you certainly have control over how you experience them. By embracing the buzz, planning ahead, curating your own movie marathon, managing expectations, and engaging in post-movie discussions, you can make your summer movie season truly enjoyable and memorable. Take care of your movie experience and make this summer a blockbuster in itself.
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