Cineplex reopens some theatres after $178-million loss in first quarter

BUSINESS

Cineplex reopens some theatres after $178-million loss in first quarter

Published Tuesday, June 30, 2020 8:35AM EDT

Cineplex Odeon Theatre at Yonge and Eglinton in Toronto on Dec. 16, 2019. (Aaron Vincent Elkaim / THE CANADIAN PRESS)

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Cineplex Inc. is reopening some of its theatres as the company struggles with the fallout of COVID-19 and the demise of its takeover deal.

The Toronto-based movie theatre company will open some theatres in British Columbia, Saskatchewan, Quebec, New Brunswick, Nova Scotia and Newfoundland on Friday.

The reopenings come as Cineplex vows to sue U.K.-based chain Cineworld PLC for calling off a $2.8-billion takeover of the company.

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On Monday, Cineplex said the COVID-19 pandemic had a "material negative effect" on its operations and resulted in a $178.4-million loss in the first quarter.

The company lost $2.82 per diluted share for the three months ended March 31, compared with a loss of 12 cents per share or $7.36 million a year earlier.

Cineplex revenues tumbled to $282.8 million from $364.6 million, while attendance plunged to 10.7 million from nearly 15 million.