Cineplex is said to weigh sale of digital advertising business
BNN Bloomberg
Cineplex Inc., Canada’s largest theater chain, is weighing the sale of its digital advertising business, which operates electronic displays at restaurants and shopping malls, according to people familiar with the matter.
The unit generated sales of $39.5 million last year, according to the company, or about 3 per cent of Cineplex’s total revenue. Its screens are in more than 30 countries in venues such as Tim Hortons cafes and McDonald’s Corp. restaurants. The proceeds from a sale would be used to reduce debt, said the people, who asked not to be identified discussing nonpublic information.
A representative for Toronto-based Cineplex declined to comment.
On the company’s most recent earnings call in November, Chief Financial Officer Gord Nelson said that “in addition to deleveraging through operating results, we will continue to evaluate value-creating liquidity events, which could include asset sales.”
