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Box office bonanza helps Cineplex buck recession

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ineplex Galaxy Income Fund posted higher revenue and profits based on heightened demand for movies in the third quarter.Revenue totalled $257.5 million, up 7.7 per cent or $18.4 million from $239.1 million in the same period last year.Attendance at movies in Canada hit 18.8 million, up four per cent from 18 million last year.Cineplex said its box office sales for the quarter, reported at $155.9 million, was the highest-ever box office revenue for any given quarter."From a box office perspective, [the recession] has been fantastic," Cineplex Entertainment CEO Ellis Jacob said.The Toronto-based income trust also reported higher net income of $20.4 million for the third quarter, up from year-ago profit of $18.4 million.Revenue met a consensus estimate of four analysts compiled by Thomson Reuters.That a screener of movies would fare well during a recession even as other businesses dependent on discretionary income have suffered is not necessarily surprising, economists note. Three-month stock chart for Cineplex Galaxy Income Fund on the TSX.Three-month stock chart for Cineplex Galaxy Income Fund on the TSX. (CBC)"People still spend money during recessions; they just spend it on different things," TD Economist Derek Burleton said."The entertainment sector has done well in general, and for people who are ...