Cineplex registered a record second quarter, thanks in large part to the strong membership of the SCENE loyalty program−a partnership between Scotiabank and Cineplex Entertainment.
“The SCENE loyalty program continues to exceed our expectations adding more than 266,000 members to finish the first quarter at 6.8 million members,” Cineplex CEO Ellis Jacob said during the company’s Aug. 13 second-quarter earnings conference call, according to Seeking Alpha. “In addition, SCENE announced that later this year members will be able to earn and redeem points at more than 800 CARA restaurant locations across Canada. Thirdly, members can earn SCENE points and with other CARA brands to launch later this year. Strategic marketing partnerships such as those with CARA and SportChek helped us grow our member base and make the program even more valuable to existing members.”
During the Q&A session at the end of the call, Cineplex CFO Gord Nelson was asked what percentage of admissions or concession sales come from SCENE loyalty program members. Without offering specifics, Nelson replied.
“What I can tell you is this: A significant share of our ticket purchases in our concession sales comes from SCENE participants,” Nelson said. “And with 6.8 million SCENE members, a significant portion of the Canadian population are holders of SCENE cards.”
Second-quarter revenue rose 6.8%, to $345.5 million.
“Our digital commerce offerings continue to gain traction in the second quarter of this year with Cineplex.com registering a 20% increase in unique visitors and a 22% increase in visits versus the prior year period,” Jacob said. “The Cineplex mobile app has been downloaded more than 12.2 million times as of June 30, 2015, recording nearly $667 million app sessions and making it one of Canada’s most popular mobile brands. At Cineplex, we continued to enhance a technology platform releasing support for broadcast in both iOS and Android Apps, as well as supporting super ticket offerings.”
Earlier this year, Cineplex announced plans to launch a new social entertainment destination called The Rec Room. The Rec Room features three main offerings: A large attractions area featuring state-of-the-art simulation games, redemption games and recreational games; a performance venue offering live entertainment such as musical acts, bands and comedians; along with a theater-sized screen and an up-scaled casual dining restaurant.
“With the strategic and concept development work largely behind us, we are entering the next phase of this project focusing on execution and building our first location at South Edmonton Common,” Jacob said. “We have a number of additional locations under negotiation and expect to announce these as they come to fruition in the weeks ahead.”