General Cinema’s parent GC Cos. Inc. suffered a 49% drop in net profit to $2 million for the three months to July 31 on 6.5% lower revenue of $114.6 million, it said Thursday.
GC gave no explanation for the downturn, but it was at least partly due to the theater operations. The company said its General Cinema Theaters’ operating profit, before interest and taxes, fell 19% to $5.2 million in the quarter.
For the first nine months of the fiscal year, the theater subsidiary’s operating profit has collapsed from $20 million to $6.8 million.
Overall net profit for GC have dropped from $11 million to $1.1 million for the fiscal year to date. GC stock rose 12 cents to $47.25 Thursday.