As the world gradually reclaims its pre-pandemic rhythms, the cinema industry—once among the hardest hit—has begun to flicker back to life. For investors, this resurgence presents a compelling opportunity to reassess the prospects of two of North America’s most prominent theatre chains: Cineplex Inc.(TSX:CGX) in Canada and AMC Entertainment Holdings (NYSE:AMC) in the United States.
This content has been prepared in collaboration with Cineplex Inc. and AMC Entertainment Holdings, third-party issuers, and is intended for informational purposes only.
Cineplex: A Canadian comeback story?
Cineplex, Canada’s largest movie theatre operator, has shown notable signs of recovery since the pandemic’s peak. In its Q4 2024 earnings, Cineplex reported:
- Revenue of C$362.7 million, up 15 per cent year-over-year
- Earnings per share (EPS) of $0.05, a significant turnaround from a loss of -$0.14 the year prior
- Box office revenue per patron rose to C$13.26, while concession revenue per patron increased to C$9.41
Fast-forward to Q2 2025, the theatre chain recently reported nearly 170 per cent growth compared to last year’s Q2.
Attendance has steadily improved, with January 2025 box office revenue nearly matching that of January 2024, signaling a stabilization in consumer demand. Cineplex stock has responded positively.
Cineplex is also diversifying. Its location-based entertainment segment and Scene+ loyalty program are helping to drive engagement beyond traditional moviegoing. A recent refinancing initiative aims to extend debt maturities and reduce equity dilution risk, setting the stage for potential dividend reinstatement.
Cinepelx stock (TSX:CGX) has fallen 5.6 per cent since the year began but is up 36.54 per cent since this time last year, last trading at C$11.51.
AMC Entertainment: From meme stock to market resilience
AMC, the world’s largest cinema chain, has had a rollercoaster ride since 2020. After surviving the pandemic with the help of retail investors during the “meme stock” frenzy, AMC has focused on operational efficiency and strategic closures.
In Q3 2023, AMC posted its best quarterly earnings in its 103-year history, driven by the massive success of films like Barbie and Oppenheimer, which grossed a combined US$2.3 billion globally. Key highlights include:
- Revenue of US$1.4 billion, up over 45 per cent year-over-year
- Closure of 156 underperforming locations, offset by 57 new openings
- Rent renegotiations yielding tens of millions in annual savings
Despite these gains, AMC still carries a deferred rent balance of $74.2 million and a significant debt load. However, its leaner operations and improved cash reserves suggest a more sustainable path forward.
More recently, AMC’s Q1 2025 numbers had total revenues of US$862.5 million compared to US$951.4 million for Q1 2024, coupled with a net loss of US$202.1 million compared to net loss of US$163.5 million in Q1 2024.
CEO Adam Aron blamed it on the poor performance of the box office at large from January to March this year, which he called “the lowest it has been since 1996” in a media release. He went on to explain, “If that level of activity were to continue, of course it would be highly problematic for movie theatres. But to the contrary, since April 1, movie theatre demand has been booming
AMC stock (NYSE:AMC) has fallen 25.88 per cent since the year began and is down 41.35 per cent since this time last year. It has seen some growth in the past three months, rising 11.74 per cent since May. AMC last traded at US$2.95 (C$ 4.01).
The investment angle: A slow but steady return to the big screen
Both Cineplex and AMC are navigating a transformed entertainment landscape. While streaming remains a formidable competitor, the enduring appeal of the theatrical experience—especially for blockbuster releases—continues to draw audiences back.
Cineplex offers a more traditional recovery play with a focus on operational diversification and financial restructuring. AMC, on the other hand, presents a higher-risk, higher-reward scenario, buoyed by its brand recognition and aggressive cost-cutting.
Final take: Time to roll the credits—or the dice?
The cinema industry’s revival is far from complete, but the trajectory is promising. As attendance rebounds and studios ramp up content pipelines, both Cineplex and AMC are working out a way to benefit.
Investors should dig deeper—analyzing debt levels, content slates, and evolving consumer behavior—to determine which stock best fits their portfolio. Whether you’re drawn to Cineplex’s steady Canadian comeback or AMC’s bold American reinvention, the curtain is rising on a new act in theatrical investing.
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