Investment Thesis
Cineplex (CPXGF) [TSX:CGX] delivered mixed Q4 2018 earnings. While its revenue increased year over year, its theatre attendance declined again. Looking forward, it will be challenging for Cineplex to grow its top and bottom line due to the difficulty to increase theatre attendance. Its diversification initiatives may take longer than anticipated as well. Meanwhile, the Canadian economy is heading for a slowdown in 2019. We believe investors may want to wait on the sideline until better visibility is seen.
Source: YCharts
Recent Developments: Q4 2018 Financial Highlights
Cineplex reported mixed Q4