Canada's Cineplex says it takes a pass on US assets
OTTAWA, Sept 24 (Reuters) - Cineplex Entertainment, Canada's biggest movie exhibitor, said on Wednesday it is being bombarded with offers to buy cheap U.S. assets, but that it does not want to get distracted from home-grown growth opportunities.
Majority owned by Cineplex Galaxy Income Fund (CGX_u.TO), the company said it will spend between C$8 million ($7.7 million) and C$10 million in 2008 to expand its loyalty program and Internet operations.
"We get a call every week about assets that are up for sale in the U.S. and unless it's a compelling deal I think it would be a mistake for us to get distracted from all the opportunities that we have in Canada," Chief Executive Ellis Jacob told an investor conference.
"Here, we are the big fish in a small pond. We go there and we become a minnow in an ocean."
The Toronto-based company, which reported an 8.8 percent increase in 2007 revenue to C$805 million, said it is working to boost movie attendance and related sales of food and merchandise.
It expects to start selling merchandise, such as DVDs, from its website later this year. It also hopes to boost movie attendance and related sales through a customer reward program launched with Scotiabank (BNS.TO).
Cineplex, which operates 132 theaters under such names as Cineplex Odeon and Famous Players, will install at least 175 3D systems in theaters by December 2009.
Units of Cineplex Galaxy, which owns a 76 percent stake in the exhibition business, fell 51 Canadian cents to C$14.89 on the Toronto Stock Exchange on Wednesday. ($1=$1.04 Canadian) (Reporting by Susan Taylor; Editing by Peter Galloway)
