Ladies and gentlemen, good day, and welcome to the Cineplex Q4 Year End twenty nineteen Analyst Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Ms. Melissa Prosacco, Senior Manager, Investor Relations and Communications. Please go ahead, Ms.
Good morning. Before beginning the call, we would like to remind you that certain statements being made are forward looking and subject to various risks and uncertainties. Such forward looking statements are based on management's beliefs and assumptions regarding the information currently available. Actual results could differ materially from those expressed in the forward looking statements. Factors that could cause results to vary include, among other things, adverse factors generally encountered in the film exhibition industry risks associated with national and world events discovery of undisclosed material liabilities and general economic conditions.
I will now turn the call over to our President and CEO, Ellis Jacob.
Thank you, Melissa. Good morning, and welcome to Cineplex Inc. Fourth quarter and year end twenty nineteen conference call. We are all glad you could join us. On today's call, I will provide a brief overview of our top line annual results and accomplishments as well as a status update on the pending acquisition of Cineplex by Cineworld Group.
At the conclusion of my remarks, our Chief Financial Officer, Gord Nelson, will provide a brief overview of our financials, specifically focusing on the transaction related expenses, which have impacted the results. Following that, we will hold a question and answer period. I am pleased to report that 2019 was another strong year for Cineplex. Our diversified businesses continued to build scale and show more meaningful results, resulting in total revenue of $1,700,000,000 up 3.3% year over year as we achieved all time annual records for media, amusement and food service revenue. Despite the strong results, adjusted EBITDA and net income were negatively impacted by transaction costs related to the proposed acquisition as well as the adoption of IFRS 16, which Gord will go over in more detail shortly.
Shifting our focus to some of our key accomplishments throughout the year, there was much to celebrate in 2019. We opened two new theaters, one in Vancouver and one in Saskatoon, as well as a new VIP cinema experience by retrofitting our Winston Churchill location in Oakville. Through our existing partnership with CJ40plex and reaffirming our commitment to bringing the latest in cinema technology to Canadians, this year we added five new 40x auditoriums and five new ScreenX auditoriums to our circuit. We also introduced Junction, our new theater of the future concept that combines cinema with location based entertainment to create the perfect entertainment destination for any occasion. During the year, we expanded our alcohol beverage service to an additional 52 theaters now available at 88 theaters, which is over 50% of our circuit.
Adding nine locations this year, our Uber Eats delivery service is available at 104 theaters and we also launched our partnership with Skip The Dishes providing home delivery from 130 theaters across the country. Both our cinema media and digital place based media businesses reported record annual results. Cineplex Media saw growth in showtime and pre show advertising and in partnership with Tangerine Bank announced Tangerine Tuesdays, a continuation of our popular Tuesday ticket program where guests enjoy discounted movie admissions and free popcorn upgrades for Tangerine customers. Cineplex Digital Media saw continued growth with existing clients completed the deployment of AMC Theatres digital network at approximately six thirty locations across The United States. Turning our attention to location based entertainment, in 2019, we opened new locations of The Rec Room in Mississauga, Ontario and St.
John's, Newfoundland as well as the first two locations of our reinvented Palladium concept in Brampton and Whitby, Ontario. In 2020, we plan to open three new locations of The Rec Room and two new Palladium locations. The first will be later this month when we open the doors to Manitoba's very first location of The Rec Room in Winnipeg. SCENE also celebrated a big milestone last year as we reached the 10,000,000 member mark in September. Now with over 10,300,000 members, SCENE is Canada's top loyalty program for movie lovers.
I'm proud to report that for the third time Cineplex was named one of Canada's most admired corporate cultures by Waterstone Human Capital. Selected from hundreds of companies, the award recognizes best in class Canadian organizations that demonstrate a strong work culture. Also during the year, we were recognized as one of the top 40 most valuable Canadian brands for 2019. The study by Brand Z was based on in-depth consumer research and Cineplex was highlighted numerous times throughout the report for our customer experience, emotional connection, excellent reputation, clear purpose and good citizenship. And of course, this past December, we announced that we had entered into an agreement to be acquired by Cineworld Group.
As the entertainment industry continues to transform, the pending transaction ensures that Cineplex part of the next era of global entertainment. It means that our business, particularly our network of 165 movie theaters across Canada has access to global opportunities in an evolving entertainment landscape. Overall, sentiment has been very positive. In fact, last night, we announced that Cineplex shareholders voted 99.92% in favor of the deal following the special shareholder meeting. Separately, Cineworld announced yesterday that its shareholders also voted to approve the transaction at its general meeting of shareholders.
Cineworld will continue to work towards obtaining the remaining regulatory approvals required to close the transaction under the Investment Canada Act. As you know, transactions like this take time, but the process continues and we expect the transaction to close between March 23 and June 30. Before I turn the call over to Gord, I want to say thank you to our shareholders for your continued support as well as Cineplex's senior management team and our 13,000 employees across Canada and The U. S. For their hard work and commitment throughout the year.
Since going public in 02/2003, we have worked hard to deliver value to our shareholders and we are confident that the pending transaction with Cineworld does just that. With that, I will pass the call over to Gord.
Thanks, Ellis. I am pleased to present a condensed summary of the fourth quarter and annual financial results for Cineplex Inc. For your further reference, our financial statements and MD and A have been filed on SEDAR this morning and are also available on our Investor Relations website at cineplex.com. Our MD and A and earnings press release includes a fulsome narrative on the operational results, so I will just focus on highlighting and quantifying some of the more unusual items related to the pending transaction and the impact of the adoption of IFRS 16. For the fourth quarter, total revenue increased 3.6% to an all time quarterly record of $443,200,000 as a result in growth and results from foodservice revenue and media revenues.
On an annual basis, total revenues of $1,700,000,000 increased 3.3% or $52,700,000 as compared to the prior year on all time annual records reported for food service, media and amusement revenues. The bottom line was impacted significantly as a result of the pending transaction and the adoption of IFRS 16. Key items impacting the results and the comparability to the prior year include the following: G and A expenses included Cineworld transaction related costs of $11,700,000 which included professional fees and the acceleration of certain stock based compensation items. Interest expense was impacted by the inclusion of $12,100,000 in non cash interest expense related to the loss of hedge accounting under proposed change of control and expected repayment of debt on closing. The adoption of IFRS 16 negatively impacted net income by approximately $14,300,000 for the full year in and $25,500,000 as compared to the prior year.
In total, these items after adjusting for taxes negatively impacted net income by $43,100,000 or $0.68 per share as compared to 2018. As Ellis mentioned, we have worked hard to deliver value to our shareholders and we are confident that the pending transaction with Cineworld does just that. That concludes our remarks for this morning, and we'd now like to turn the call over to the conference operator for questions.
Thank you. Our first question is coming from Derek Lessard from TD Securities. Please go ahead.
Hey, good morning, Ellis, Gord, Melissa and I guess Pat's not there. Just before I start, I just wanted to let you all know that it was a pleasure working with you guys over the years. You're all consummate pros and looking out for the best interest of the shareholders.
I would have loved
to see how all these initiatives played out for you guys. So one question for me is you ran a pretty extensive go shop process. And just wondering if you could add some color to that process and perhaps some of the feedback you got coming out of it.
Derek, thank you for your comments, much appreciated. We did run a robust process as you mentioned on to the go shop and we had parties that were interested in the go shop. But at the end of the day, the $34 price was very fair and the premium that we were offered at that position of 42 percent was something that the other parties weren't able to go beyond.
Okay. Thanks guys.
Our next question is coming from Adam Shine from National Bank Financial.
Ellis, of course, congratulations on the transaction. Just one quick question. I mean, you highlighted March 23 or June. That's really been the mantra since back in December. Just curious, have we seen any movement in regards to Heritage Canada and or ISET making any progress on the file, odds of a potential closing to close out Q1 versus slippage into Q2?
Just your thoughts.
We have a process that's underway, Adam, and we continue to work together with Cineworld and the authorities to make sure that we continue to move this forward and we continue communicate with all of the parties. And again, this is a Cineworld proposal to Investment Canada.
Okay. Thank you.
Thank you.
It appears there are no further questions at this time. Mr. Jacob, I would like to turn the conference back to you for any additional or closing remarks.
Again, thank you for joining us this morning. We look forward to providing additional updates as we move towards closing the transaction with Cineworld. And thank you very much again for all your support as shareholders, as analysts and great group to work with and also our team at Cineplex and all of our employees. Thanks very much again. Have a great day.
Ladies and gentlemen, that will conclude today's conference call. Thank you very much for your participation. You may now disconnect.