Cineplex Inc (CGX.TO) released it quarterly results today and with that announced an increase in its quarterly dividends by 4%. The monthly dividend rises from $0.125 to $0.13. Cineplex has increased dividend every year since it converted into a corporation in 2011. The new dividend amount will be effective May 2015, which will be paid in June 2015.
From the earnings release statement:
“Total revenues increased 3.5% to $289.8 million and adjusted EBITDA increased 30.3% to $40.2 million in the first quarter, primarily due to higher media revenues, higher CPP and lower operating costs,” said Ellis Jacob, President and CEO, Cineplex Entertainment.
“During the quarter, we announced The Rec Room, a social entertainment destination featuring a wide range of gaming, entertainment and dining options; SCENE announced a strategic marketing partnership enabling its members to earn and redeem points at more than 800 CARA restaurants across Canada; and Cineplex Starburst Inc. announced the creation of a new US based venture, Brady Starburst Inc., which formed the second largest distributor of amusement and vending equipment in North America.”
“Overall, it was a successful quarter and looking ahead, I believe the film slate for 2015 looks very strong. I am excited about the strategic opportunities ahead which will continue to diversify our business and help us achieve meaningful growth.”
“Cineplex’s strong balance sheet, continued investment in the enhancement of the exhibition experience and the diversification of our business model positions us well for the future. As such, we are pleased to announce a 4.0% dividend increase to $1.56 per share on an annual basis from the current $1.50 per share. This increase will be effective with the May 2015 dividend which will be paid in June 2015. Cineplex has increased its dividend every year since the company converted to a corporation.”
The annual dividend rises from $1.5 per share to $1.56 per share. My portfolio consists of 40 shares of Cineplex, increasing my dividends from $60 to $62.40, an increase of $2.40.