US stocks close lower as tariff uncertainty weighs
NEW YORK: US stocks were lower for a second straight session on Tuesday as comments from US President Donald Trump and Treasury Secretary Scott Bessent provided little clarity to the timeline for any trade deals.
Trump said he and top administration officials will review potential trade deals over the next two weeks to decide which ones to accept. In addition, Trump met with Canadian Prime Minister Mark Carney for the first time, which yielded no immediate results.
Trump's comments ran somewhat counter to earlier statements from Bessent, who said the administration could announce some trade agreements as early as this week.
"It is all about negotiating the tariffs and Trump talks like he's going to hit home runs here; he's going to be very happy if we just get more of a level playing field," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.
"The wild card, the big wild card is China, I don't think the EU is going to be really easy here, I don't think Canada is going to be easy as well. But China is the big one and certainly they are going to be very tough negotiators, and we might have to go it alone without China for a while."
The Dow Jones Industrial Average fell 389.83 points, or 0.95%, to 40,829.00, the S&P 500 lost 43.48 points, or 0.77%, to 5,606.90 and the Nasdaq Composite lost 154.58 points, or 0.87%, to 17,689.66.
Commerce Department data showed businesses boosted imports of goods in March ahead of the tariff announcements, pushing the country's trade deficit to a record high of US$140.5 billion.
Late on Monday Trump said he would announce pharmaceutical tariffs over the next two weeks, his latest announcement regarding levies that have whipsawed global financial markets over the past few months.
Healthcare, down 2.8%, was the worst performing of the 11 major S&P sectors, with Eli Lilly, down 5.6%, and Moderna, off 12.3%, among the biggest drags.
Vaccine makers such as Vertex Pharmaceuticals, which tumbled 10%, saw additional pressure after an internal email seen by Reuters showed the US Food and Drug Administration has named Vinay Prasad, an oncologist who has previously criticized the FDA and was a fierce critic of COVID-19 vaccine and mask mandates, as the director of its Center for Biologics Evaluation and Research.
Stocks have been volatile since Trump announced his first round of tariffs on April 2, with the S&P 500 initially dropping nearly 15%, only to stabilize and briefly recover to levels from before the tariffs were announced.
The tariff uncertainty has soured consumer sentiment data, and many companies have withdrawn their profit outlooks. Comments from Federal Reserve officials, including chair Jerome Powell, suggest the central bank would be patient before adjusting monetary policy until the impact of tariffs is reflected in economic data.
The Fed started its two-day meeting on Tuesday, with the central bank widely expected to keep interest rates unchanged.
Markets are currently pricing in a nearly 80% chance for a cut of at least 25 basis points (bps) to occur at the July meeting, according to data compiled by LSEG.
Constellation Energy jumped 10.3% as the best performer on the S&P 500 after its quarterly results, helping to lift the utilities sector 1.2%.
In contrast, shares of data analytics firm Palantir, among the best S&P 500 performers on the year, tumbled 12%, as investors were unimpressed by the company's modest revenue beat and inline profit.
Declining issues outnumbered advancers by a 1.35-to-1 ratio on the NYSE and by a 1.82-to-1 ratio on the Nasdaq.
The S&P 500 posted nine new 52-week highs and nine new lows while the Nasdaq Composite recorded 29 new highs and 106 new lows.
Volume on US exchanges was 14.24 billion shares, compared with the 17.95 billion average for the full session over the last 20 trading days. — Reuters
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TORONTO, Aug. 12, 2025 /CNW/ – (TSX: CGX) – Today, Cineplex Inc. ('Cineplex' or the 'Company') released its financial results for the three and six months ended June 30, 2025. Unless otherwise specified, all amounts contained in this news release are in Canadian dollars. Q2 2025 Highlights: Reported $361.8M in total revenues, a 30.5% increase over the prior year Generated $33.4 million in Adjusted EBITDAaL compared to $0.9 million in the prior year Entertained 11.6 million guests in our theatres during the quarter, a 32.7% increase over the prior year Set all-time quarterly records with Box Office per Patron at $13.68 and Concession per Patron at $10.04 Premium experiences drove 46.2% of total box office revenue Increased Media revenues by 9.1% over the prior year 'The strong second quarter results demonstrated the powerful combination of consistent, high-quality content and the consumer appetite for premium experiences,' said Ellis Jacob, President and CEO, Cineplex. 'Guests responded enthusiastically to a diverse slate of family, action, horror and adventure films, driving the significant attendance increase over the prior year. This momentum has carried into the third quarter, underscoring the continued demand for the immersive, theatrical experience. Our cinema media business continues to demonstrate why it remains a premier platform for advertisers seeking to reach highly attentive audiences. Amid broader softness in the advertising market, cinema media revenue grew year-over-year – highlighting the unique value of the theatrical environment. Meanwhile, our digital media business delivered strong revenue growth with a 17.8% increase driven by higher advertising sales across Canada's largest out-of-home shopping network and increased project revenues. We expect this momentum to continue, supported by our 10-year agreement with the North Carolina Education Lottery, which further validates the long-term growth potential of this segment. Our LBE segment delivered a second-quarter revenue record with a 13% increase over the prior year due to the three new locations that opened in the fourth quarter of 2024. Our strong performance this quarter across our businesses positions us well for continued growth and delivering long-term value to our shareholders.' Second Quarter Financial Results Financial highlights Second Quarter Year to Date (in thousands of dollars, except theatre attendance in thousands ofpatrons and per share and per patron amounts) 2025 2024 Change (i) 2025 2024 Change (i) Total revenues $ 361,816 $ 277,336 30.5 % $ 626,099 $ 572,095 9.4 % Theatre attendance 11,583 8,731 32.7 % 19,975 18,550 7.7 % Net loss from continuing operations $ (2,198) $ (21,312) -89.7 % $ (38,813) $ (84,282) -53.9 % Net income from discontinued operations, including gain ondisposition $ — $ (127) -100.0 % $ — $ 68,003 -100.0 % Net (loss) income (ii) $ (2,198) $ (21,439) -89.7 % $ (38,813) $ (16,279) 138.4 % Cash provided by continuing operating activities $ 55,791 $ 997 NM $ 33,127 $ 36,951 -10.3 % Box office revenues per patron ('BPP') (iii) $ 13.68 $ 13.11 4.3 % $ 13.04 $ 12.91 1.0 % Concession revenues per patron ('CPP') (iii) $ 10.04 $ 9.56 5.0 % $ 9.66 $ 9.24 4.5 % Adjusted EBITDA (iii) $ 76,476 $ 42,472 80.1 % $ 108,210 $ 89,207 21.3 % Adjusted EBITDAaL (iii) $ 33,430 $ 925 NM $ 22,618 $ 5,510 310.5 % Adjusted EBITDAaL from discontinued operations (iii) $ — $ — NM $ — $ 508 -100.0 % Adjusted EBITDAaL including discontinued operations (iii) $ 33,430 $ 925 NM $ 22,618 $ 6,018 275.8 % Adjusted EBITDAaL margin from continuing operations (iii) 9.2 % 0.3 % 8.9 % 3.6 % 1.0 % 2.6 % Adjusted free cash flow (iii) $ 15,372 $ (13,049) NM $ (10,352) $ (19,054) -45.7 % Adjusted free cash flow per share (iii) $ 0.242 $ (0.205) NM $ (0.163) $ (0.299) -45.5 % Loss per share from continuing operations – basic (ii) $ (0.03) $ (0.33) -90.9 % $ (0.61) $ (1.32) -53.8 % Earnings per share from discontinued operations – basic $ — $ — NM $ — $ 1.07 -100.0 % Loss per share – basic (ii) $ (0.03) $ (0.33) -90.9 % $ (0.61) $ (0.25) 144.0 % Loss per share from continuing operations – diluted (ii) $ (0.03) $ (0.33) -90.9 % $ (0.61) $ (1.32) -53.8 % Earnings per share from discontinued operations – diluted $ — $ — NM $ — $ 1.07 -100.0 % Loss per share – diluted (ii) $ (0.03) $ (0.33) -90.9 % $ (0.61) $ (0.25) 144.0 % (i) Period over period change calculated based on thousands of dollars except percentage and per share values. Changes in percentage amounts are calculated as 2025 value less 2024 value. (ii) 2025 includes expenses related to other transactions or litigation outside the normal course of business in the amount of $0.2 million (2024 – $0.5 million) for the second quarter and $0.5 million (2024 – $2.4 million) for year to date. The second quarter of 2024 includes the loss on the 2024 Refinancing of $2.0 million and $56.0 million for year to date. (iii) Adjusted EBITDA, adjusted EBITDAaL, adjusted EBITDAaL margin, adjusted free cash flow per common share of Cineplex, BPP and CPP are measures that do not have a standardized meaning under generally accepted accounting principles ('GAAP'). These measures as well as other Non-GAAP other financial measures reported by Cineplex are defined in the 'Non-GAAP and Other Financial Measures' section at the end of this news release. Second Quarter and July Box Office Results The following table compares 2025 monthly box office revenues to 2024 monthly box office revenues: Month 2024 Box office (i) 2025 Box office (i) 2025 as a percentage of 2024 April $29,183 $51,375 176 % May $33,936 $55,331 163 % June $51,359 $51,770 101 % Q2 Total $114,478 $158,475 138 % July $72,468 $72,722 100 % (i) Amounts are in thousands of dollars. KEY DEVELOPMENTS IN THE SECOND QUARTER OF 2025 The following describes certain key business initiatives undertaken and results achieved during 2025 in each of Cineplex's core business areas: FILM ENTERTAINMENT AND CONTENT Theatre Exhibition Reported second quarter box office revenues of $158.5 million, an increase of $44.0 million or 38.4% from $114.5 million in the prior year, driven by a 32.7% increase in theatre attendance due to a strong film slate during the quarter, including A Minecraft Movie, Lilo & Stitch and Mission: Impossible – The Final Reckoning. Reported second quarter BPP of $13.68, an all-time quarterly record, an increase of $0.57 or 4.3% compared to the prior year of $13.11 due to an increase in box office revenues from premium priced products. Implemented attendance driving initiatives during the quarter including VIP tickets at regular admission prices and $5 Tuesdays. Theatre Food Service Reported second quarter theatre food service revenues of $116.3 million, an increase of $32.8 million or 39.4% compared to the prior year, primarily due to a 32.7% increase in theatre attendance. Reported a second quarter CPP of $10.04, an all-time quarterly record, an increase of $0.48 or 5.0% compared to the prior year, primarily due to an increase in average transaction spend. Alternative Programming and Distribution As part of the theatrical distribution partnership with Lionsgate, Cineplex Pictures (Cineplex's distribution business) distributed Ballerina, and Hurry Up Tomorrow. Continued a leadership position in alternative programming, with 6.6% of second quarter box office revenues coming from international films, compared to those films having a 2.0% North American share. Strong performing titles included, Guru Nanak Jahaz (Punjabi) of which Cineplex represented over 80% of the North American box office, Kesari Chapter 2: The Untold Story Of Jallianwala Bagh (Hindi), and Sardaar Ji 3 (Punjabi). Event Cinema programming consisted of a variety of successful initiatives including the anime event COLORFUL STAGE! The Movie: A Miku Who Can't Sing, the theatrical releases of the popular television series finale The Chosen: Last Supper Part 2 and Part 3, and the classic concert event Pink Floyd at Pompeii – MCMLXXII presented in IMAX. MEDIA Reported second quarter media revenues of $31.8 million, an increase of $2.7 million or 9.1% compared to the prior year. Cinema Media Reported second quarter cinema media revenues of $19.3 million, an increase of $0.8 million or 4.1% from the prior year primarily due to growth in showtime revenues. Continued to leverage opportunities in data and analytics to drive revenues. Digital Place-Based Media Reported second quarter revenues of $12.5 million, an increase of $1.9 million or 17.8% from the prior year. Reported second quarter project revenues of $4.2 million, an increase of $0.7 million or 18.2%, compared to the prior year of $3.6 million, which primarily consists of hardware sales and professional services. Reported second quarter media and services revenues of $8.2 million, an increase of $1.2 million or 17.7%, compared to the prior year of $7.0 million, which primarily consists of media advertising, sales of software and IT support. In May 2025, Cineplex Digital Media signed a ten-year agreement with the North Carolina Education Lottery to deploy a digital signage network across 1,500 retail locations and claim centers, with the opportunity to expand locations throughout its long-term partnership. LOCATION-BASED ENTERTAINMENT Reported second quarter revenues and a second quarter record of $33.2 million, an increase of $3.8 million or 13.0% compared to the prior year due to three additional locations. Reported second quarter adjusted store level EBITDAaL of $5.8 million, an increase of $1.0 million or 21.8% compared to the prior year. LOYALTY Membership in the Scene+ loyalty program was over 15 million members as at June 30, 2025. CORPORATE Celebrated Pride month by hosting external in-person and virtual Pride-related events designed to uplift and empower the 2SLGBTQIA+ community and its allies. Cineplex employees donated to Rainbow Railroad, a global not-for-profit organization that helps at-risk 2SLGBTQIA+ people reach safety worldwide. Cineplex closed the sale of Famous Players Prince Rupert Cinemas located in Prince Rupert, British Columbia for proceeds of $0.9 million on July 3, 2025. During the quarter, Cineplex implemented a cost reduction program including headcount reductions and efficiency improvements focused on leveraging technology investments and process optimization. On June 27, 2025, Cineplex announced President and CEO Ellis Jacob will retire on December 31, 2026. During the quarter, Rania Llewellyn was elected to the Board of Directors following Joan Dea's decision to not stand for re-election. NON-GAAP AND OTHER FINANCIAL MEASURES National Instrument 52-112, Non-GAAP and Other Financial Measures Disclosure ('NI 52-112') imposes obligations regarding disclosure of non-GAAP financial measures, non-GAAP ratios, and other financial measures. Cineplex reports on certain non-GAAP measures, non-GAAP ratios, supplementary financial measures and total segment measures that are used by management to evaluate Cineplex's performance. The following measures included in this news release do not have a standardized meaning under GAAP and may not be comparable to similar measures provided by other issuers. Cineplex includes these measures because management believes that they assist investors in assessing financial performance. These non-GAAP and other financial measures are used throughout this news release and are defined below. NON-GAAP FINANCIAL MEASURES A non-GAAP financial measure is defined in NI 52-112 as a financial measure disclosed that (a) depicts the historical or expected future financial performance, financial position or cash flow of an entity, (b) with respect to its composition, excludes an amount that is included in, or includes an amount that is excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the entity, (c) is not disclosed in the financial statements of the entity, and (d) is not a ratio, fraction, percentage or similar representation. NON-GAAP RATIOS A non-GAAP ratio is defined in NI 52-112 as a financial measure disclosed that (a) is in the form of a ratio, fraction, percentage or similar representation, (b) has a non-GAAP financial measure as one or more of its components, and (c) is not disclosed in the financial statements. Below are non-GAAP financial measures or non-GAAP ratios for continuing operations that are reported by Cineplex. EBITDA, ADJUSTED EBITDA AND ADJUSTED EBITDAaL Management defines EBITDA as earnings before interest income and expense, income taxes and depreciation and amortization expense. Adjusted EBITDA excludes the change in fair value of financial instrument, loss (gain) on disposal of assets, foreign exchange, and impairment, depreciation, amortization, interest and taxes of Cineplex's other joint ventures and associates, and other items that do not in management's view represent a factor relevant to the ongoing performance of the business such as the Competition Tribunal's administrative monetary penalty. Adjusted EBITDAaL modifies adjusted EBITDA to deduct current period cash rent paid or payable related to lease obligations. Subsequent to the adoption of IFRS 16, Leases, by Cineplex effective January 1, 2019, the calculation of EBITDA no longer includes a charge for amounts paid or payable with respect to leased property and equipment. Given the majority of Cineplex's businesses are carried on in leased premises, Cineplex introduced the measure of adjusted EBITDAaL which includes a deduction for cash rent paid/payable related to lease obligations. Cineplex's management believes that adjusted EBITDAaL is an important supplemental measure of Cineplex's profitability at an operational level and provides analysts and investors with comparability in evaluating and valuing Cineplex's performance period over period. EBITDA, adjusted for various unusual items, is also used to define certain financial covenants in Cineplex's 2024 Credit Facility. Management calculates adjusted EBITDAaL margin by dividing adjusted EBITDAaL by total revenues. EBITDA, adjusted EBITDA and adjusted EBITDAaL are non-GAAP measures generally used as an indicator of financial performance and they should not be seen as a measure of liquidity or a substitute for comparable metrics prepared in accordance with GAAP. Cineplex's EBITDA, adjusted EBITDA and adjusted EBITDAaL may differ from similar calculations as reported by other entities and accordingly may not be comparable to EBITDA, adjusted EBITDA or adjusted EBITDAaL reported by other entities. Adjusted Store Level EBITDAaL Metrics Cineplex reviews and reports adjusted EBITDAaL at the location level for LBE which is calculated as total LBE revenues from all locations less total LBE operating expenses, which excludes pre-opening costs and overhead relating to the management of LBE. Adjusted Store Level EBITDAaL Margin Calculated as adjusted store level EBITDAaL divided by total revenues for LBE for the period. SUPPLEMENTARY FINANCIAL MEASURES Supplementary financial measures are financial measures that are not (a) presented in the financial statements and (b) are, or are intended to be, disclosed periodically to depict the historical or expected future financial performance, financial position or cash flow, that is not a non-GAAP financial measure or a non-GAAP ratio as defined in the instrument. Below are supplementary financial measures that Cineplex uses to depict its financial performance, financial position or cash flows. Earnings (loss) per Share Metrics Cineplex has presented basic and diluted earnings (loss) per share net of this item to provide a more comparable loss per share metric between the current periods and prior year periods. In the non-GAAP and other financial measures, earnings is defined as net income or net loss attributable to Cineplex excluding the change in fair value of financial instruments. Per Patron Revenue MetricsCineplex reviews per patron metrics as they relate to box office revenue, theatre food service revenue and cinema media revenue such as BPP, CPP, BPP excluding premium priced product, concession margin per patron, and CMPP, as these are key measures used by investors to value and assess Cineplex's performance, and are widely used in the theatre exhibition industry. Cineplex's management defines these metrics as follows: Theatre attendance: Theatre attendance is calculated as the total number of paying patrons that frequent Cineplex's theatres during the period. BPP: Calculated as total box office revenues divided by total paid theatre attendance for the period. BPP excluding premium priced product: Calculated as total box office revenues for the period, less box office revenues from 3D, 4DX, UltraAVX, VIP, ScreenX and IMAX product; divided by total paid theatre attendance for the period, less paid theatre attendance for 3D, 4DX, UltraAVX, VIP, ScreenX and IMAX product. CPP: Calculated as total theatre food service revenues divided by total paid theatre attendance for the period. CMPP: Calculated as total cinema media revenues divided by total paid theatre attendance for the period. Premium priced product: Defined as 3D, 4DX, UltraAVX, IMAX, ScreenX and VIP film product. Theatre concession margin per patron: Calculated as total theatre food service revenues less total theatre food service cost, divided by theatre attendance for the period. Same Theatre AnalysisCineplex reviews and reports same theatre metrics relating to box office revenues, theatre food service revenues, theatre rent expense and theatre payroll expense, as these measures are widely used in the theatre exhibition industry as well as other retail industries. Same theatre metrics are calculated by removing the results for all theatres that have been opened, acquired, closed or otherwise disposed of subsequent to the start of the prior year comparative period. For the three months ended June 30, 2025 the impact of one location that was opened or acquired and four locations that were closed or otherwise disposed of have been excluded, resulting in 154 theatres being included in the same theatre metrics. For the six months ended June 30, 2025 the impact of one location that was opened or acquired and four locations that were closed or otherwise disposed of have been excluded, resulting in 154 theatres being included in the same theatre metrics. Same LBE AnalysisCineplex reviews and reports same store LBE metrics relating to food service revenues, amusement revenues, media and other revenues, as these measures are widely used by comparable businesses in the industry. Same store LBE metrics are calculated by removing the results for all LBE venues that have been opened, acquired, closed or otherwise disposed of subsequent to the start of the prior year comparative period. For the three months ended June 30, 2025 the impact of three locations that was opened or acquired have been excluded, resulting in 13 LBE venues being included in the same LBE metrics. For the six months ended June 30, 2025 the impact of three locations that was opened or acquired have been excluded, resulting in 13 LBE venues being included in the same theatre metrics. Cost of sales percentagesCineplex reviews and reports cost of sales percentages for its two largest revenue sources; box office revenues and food service revenues, as these measures are widely used in the theatre exhibition industry. These measures are reported as film cost percentage and concession cost percentage, respectively, and are calculated as follows: Film cost percentage: Calculated as total film cost expense divided by total box office revenues for the period. Theatre concession cost percentage: Calculated as total theatre food service costs divided by total theatre food service revenues for the period. LBE food cost percentage: Calculated as total LBE food costs divided by total LBE food service revenues for the period. Certain information included in this news release contains forward-looking statements within the meaning of applicable securities laws. These forward-looking statements include, among others, statements with respect to Cineplex's objectives and goals, and the strategies to achieve those objectives and goals, as well as statements with respect to Cineplex's beliefs, plans, objectives, expectations, anticipations, estimates and intentions. The words 'may', 'will', 'could', 'should', 'would', 'suspect', 'outlook', 'believe', 'plan', 'anticipate', 'estimate', 'expect', 'intend', 'forecast', 'objective' and 'continue' (or the negative thereof), and words and expressions of similar import, are intended to identify forward-looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, including those described in Cineplex's Annual Information Form ('AIF'), Cineplex's management's discussion and analysis for the year ended December 31, 2024 ('Annual MD&A') and in this news release, which is incorporated herein by reference and available on SEDAR+ ( These risks and uncertainties, both general and specific, give rise to the possibility that predictions, forecasts, projections and other forward-looking statements will not be achieved. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Cineplex cautions readers not to place undue reliance on these statements as a number of important factors, many of which are beyond Cineplex's control, could cause actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, Cineplex's expectations with respect to liquidity and capital expenditures, including its ability to meet its ongoing capital, operating and other obligations, and anticipated needs for, and sources of, funds; Cineplex's ability to execute cost-cutting and revenue enhancement initiatives in response to adverse economic conditions; competition from alternative forms of entertainment and content delivery via streaming and other formats; the impacts of any pandemic, epidemic, natural disaster, governmental restrictions, strikes or the inability to procure materials and supplies; information concerning future purchases of Common Shares under Cineplex's normal course issuer bid ('NCIB'); the outcome of the litigation with respect to Cineplex's online booking fee (described in further detail in the Annual MD&A); and risks generally encountered in the relevant industry, competition, customer, legal, taxation and accounting matters. The foregoing list of factors that may affect future results is not exhaustive. When reviewing Cineplex's forward-looking statements, readers should carefully consider the foregoing factors and other uncertainties and potential events. Additional information about factors that may cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the 'Risks and Uncertainties' section of Cineplex's Annual MD&A. Cineplex does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable Canadian securities law. Additionally, Cineplex undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Cineplex, its financial or operating results or its securities. All forward-looking statements in this news release are made as of the date hereof and are qualified by these cautionary statements. Additional information, including Cineplex's AIF and Annual MD&A, can be found on SEDAR+ at You are cordially invited to participate in a conference call with the management of Cineplex (TSX: CGX) to review our second quarter results. Ellis Jacob, President and Chief Executive Officer and Gord Nelson, Chief Financial Officer, will host the call scheduled for: Cineplex Inc. Q2 2025 Earnings Webcast: Date: Tuesday, August 12, 2025 Time: 10:00 a.m. Eastern Daylight Time Audio Webcast: Audience URL Pre-registration available. An archive of the webcast will be available at after the webcast for a limited time. Please note, analysts who cover the Company, should use the dial-in option to participate in the live question period:1-226-828-7575 (Local) or 1-833-950-0062 (Canada Toll-free), access code 167283. All attendees should join the event 5-10 minutes prior to the scheduled start time. Media are welcome to join the call in listen-only mode. About Cineplex Cineplex (TSX:CGX) is a top-tier Canadian brand that operates in the Film Entertainment and Content, Amusement and Leisure, and Media sectors. Cineplex offers a unique escape from the everyday to millions of guests through its circuit of 171 movie theatres and location-based entertainment venues. In addition to being Canada's largest and most innovative film exhibitor, the company operates Canada's favourite destination for 'Eats & Entertainment' (The Rec Room), complexes specially designed for teens and families (Playdium), and an entertainment concept that brings movies, amusement gaming, dining, and live performances together under one roof (Cineplex Junxion). It also operates successful businesses in cinema media (Cineplex Media), digital place-based media (Cineplex Digital Media or CDM), alternative programming (Cineplex Events) and motion picture distribution (Cineplex Pictures). Providing even more value for its guests, Cineplex is a partner in Scene+, Canada's largest entertainment and lifestyle loyalty program. Proudly recognized as having one of the country's Most Admired Corporate Cultures, Cineplex employs over 10,000 people in its offices and venues across Canada. To learn more, visit
Free Malaysia Today
an hour ago
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Nvidia, AMD reach deal to give US a cut of China AI chip sales
AMD's shares gained less than 1% to US$173.05 in New York yesterday, while Nvidia's shares were little changed. (Exness pic) NEW YORK : Nvidia Corp and Advanced Micro Devices Inc (AMD) have agreed to pay 15% of their revenues from Chinese AI chip sales to the US government in an unusual, legally questionable deal that reflects the Trump administration's willingness to soften export controls in exchange for financial payouts. 'Nvidia plans to share 15% of the revenue from sales of its H20 AI accelerator in China,' US President Donald Trump said in a briefing with reporters yesterday. 'AMD will deliver the same share from MI308 revenues,' a person familiar with the situation said, asking not to be identified discussing internal deliberations. Trump said he'd originally told Nvidia that he wanted a 20% cut for the US if he cleared H20 sales to China, but eventually settled for a 15% share. The two negotiated 'a little deal,' he said. The chip companies' consent to cede part of chip sales underscores the urgency of their desire to cater to customers in the world's second-largest economy. The US government has cut off sales of the most capable AI chips, arguing that China might use them for military purposes, instead allowing shipment of only pared-back products. However, the Trump administration has consistently relented on trade conditions in exchange for financial concessions — and in this case officials said the chips are not the most advanced, playing down their national security implications. There's no guarantee the arrangement with Nvidia and AMD will succeed. Trade experts said it's vulnerable to legal challenges because it could be construed as an export tax, something that's not allowed under the constitution. The chipmakers themselves said it will take months to revive production of the parts — assuming Chinese customers even opt for dated components. China's government, meanwhile, has grown increasingly hostile to the idea of Chinese firms deploying the H20 and is unlikely to warm to the idea of a chip tax. Yuyuantantian, a social media account affiliated with state-run China Central Television that regularly signals Beijing's thinking about trade, on Sunday slammed what it described as security vulnerabilities and inefficiencies of Nvidia's chip. AMD shares gained less than 1% to US$173.05 at 3.25pm in New York yesterday. Nvidia shares were little changed. 'Both Nvidia and AMD already said they would start shipping to China, so that market reaction already happened,' said Jay Goldberg, an analyst at Seaport Global Securities. 'The big question is exactly when they're going to start delivering to China again, especially now that there are strings attached,' Goldberg said. 'The deal also threatens to undermine the US argument that some trade controls are necessary to safeguard national security,' said Jacob Feldgoise, a researcher at the DC-based Center for Security and Emerging Technology. 'This seeming quid pro quo is unprecedented from an export-control perspective. 'The arrangement risks invalidating the national security rationale for US export controls,' he added. When the Trump administration first decided to grant export licenses to Nvidia and AMD last month, treasury secretary Scott Bessent said exports of H20 chips were part of trade talks with China and were used as 'a negotiating chip,' White House AI adviser David Sacks emphasised at the time that the product wasn't 'the latest and greatest'. Trump reiterated these points at the briefing yesterday, calling Nvidia's H20 'an old chip' and hailing the company's latest Blackwell chip as the 'super duper advanced' one. He signaled though that he'd be open to negotiate another deal with Nvidia CEO Jensen Huang to sell a scaled-back version of the most advanced Blackwell chip to China, too. 'I think he's coming to see me again about that,' Trump said. An Nvidia spokesman said the company follows US export rules, adding that while it hasn't shipped H20 chips to China for months, it hopes the regulations will allow US companies to compete in China. AMD similarly said in a statement yesterday that it's adhering to all US export-control laws. The US government has meanwhile begun approving export licenses for the chips. AMD's initial license applications have been cleared, the company said yesterday. The Financial Times earlier reported on the revenue-sharing deal. Trump has targeted chipmakers in the past week with a series of declarations that were light on specifics and rattled companies from Silicon Valley to Asia. On Wednesday, Trump threatened 100% tariffs on imported chips, unless companies also made investments on US soil. On examination, though, those new tariffs would apply to almost no one since most major chipmakers appear to be covered by existing investments or separate trade deals. On Thursday, Trump called on Intel Corp CEO Lip-Bu Tan to resign, describing the Malaysia-born entrepreneur as 'highly conflicted' without giving details. Tan, who sent a letter to employees assuring them that he had engaged with the administration, is expected to meet with Trump yesterday, a person familiar with the situation said. The Wall Street Journal was first to report on the meeting. Tan has been targeted by Republican senator Tom Cotton over historical business ties to China. Huang has lobbied long and hard for the lifting of restrictions, arguing that walling China off will only slow the spread of American technology and encourage local rivals such as Huawei Technologies Co. In yet another sign that his message is getting through to the White House, Trump described Huang yesterday as a 'great', 'very brilliant guy'. The tax is expected to funnel some capital to the US — but not an enormous amount in relative terms. Both Nvidia and AMD have said it'll take time to ramp back up production of their China-specific products — even if order levels return to previous levels, which is uncertain. Nvidia raked in US$4.6 billion of revenue from the H20 in the fiscal quarter ended April 27 — days after new restrictions on shipping the AI accelerator to China were imposed. It also said it had been unable to ship US$2.5 billion of H20 China revenue in that period because of the new rules. That implies it would have got more than US$7 billion in H20 sales to China during the period. If it can return to that level, the US government will stand to get about a billion dollars a quarter from its deal. AMD could generate US$3 billion to US$5 billion of 2025 revenue if restrictions were lifted, Morgan Stanley estimates. Chinese alternatives such as Huawei's Ascend chips now account for 20% to 30% of domestic demand, it reckoned. 'The US government clearly needs the money given its deficits and eagerness to collect tariffs,' said Vey-Sern Ling, managing director at Union Bancaire Privee in Singapore. 'But the complication is China's accusations about H20 chips containing back doors, which could be a negotiation tactic to highlight that the country is not 'hard up' for US chips,' Ling added. For its part, Nvidia emphasised that its H20 chip is 'not a military product or for government infrastructure'. China has 'ample supply of domestic chips,' the company said in an emailed statement. 'It won't and never has relied on Americans chips for government operations, just like the US government would not rely on chips from China,' it added.
