Exhibition giant Cinemark announced its third quarter results on Thursday, citing increased revenue.
The company, led by President and CEO Sean Gamble, reported quarterly profit of $187.8 million, compared with $90.2 million in the same period in 2023. Net income for the most recent three months included $42.7 million in tax benefits “primarily related to partial release.” Amounts of valuation allowances previously recorded in the United States.”
Revenue for the most recent quarter was $921.8 million, an increase of 5.4% year over year. Cinemark’s third-quarter adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), another measure of earnings, rose to $220.5 million from $196.8 million in the same period last year. The company touted both record sales and adjusted EBITDA for the third quarter.
On a morning call with analysts, Gamble pointed to movie audiences’ continued enthusiasm for Hollywood’s rising stars in the third quarter, citing “the deep and lasting emotional connections that theatrical releases create through an unparalleled level of emotional connection.” He emphasized that this influence has permeated to the very core of society. Line of major studio film suppliers.
“Our strong track record, including a consistent track record of outperforming the industry, is driven by years of discipline, the deployment of capital, a second-to-none highly skilled and resourceful global team, and a strong and resilient industry recovery from the pandemic. “This is a byproduct of careful navigation of Cinemark’s activities as we pursue strategic initiatives to build audiences, expand new revenue streams, and improve and optimize operational capabilities,” Gamble said in prepared remarks. Added about strategic goals.
Gamble also fielded an analyst question about Apple rethinking its theatrical strategy after reviewing the platform release mix for Wolfs. “I think this is a situation where they’re still learning their way into the business. It’s early days. We’re optimistic that they’ll find their footing in time.”
Wolfs, starring Brad Pitt and George Clooney, was originally scheduled for wide release, but Apple announced in August that it would instead be released in theaters for a week before being released on streamers. A sequel was also announced at the same time.
Gamble also noted that rivals Amazon and MGM Studios continue to lean toward theatrical releases. “Between these two things, we remain optimistic about further growth in content from streamers,” he asserted.
On the merger and acquisition front, the Cinemark chief said rival exhibitors will be hesitant to sell in a depressed market, even as the entire theatrical film industry continues to recover from pandemic-era disruptions. “But I think more attractive opportunities could start to surface in the U.S. over the next year or two,” Gamble added.
Admission revenue for the three months ended Sept. 30 increased 3.7% to $460.4 million, and concession revenue increased 8.1% to $367.3 million. The movie theater chain’s global average ticket price was $7.62 and its concession revenue per patron was $6.08.
Cinemark highlighted that this means it “achieved an all-time high per cap for food and beverages at $7.97 in the U.S. and $6.08 worldwide.”
In September, the National Association of Theater Owners announced that its members, or North American movie promoters, would be able to release “Inside Head 2,” “Deadpool,” “Inside Out 2,” “Deadpool,” “Inside Out 2” announced that it plans to invest $2.2 billion in movie theater renovations to take advantage of a rebound in box office revenue across Hollywood this year after the tentpole of studios such as Hollywood. “The Wolverine,” “Bad Boys: Ride or Die,” “It Ends with Us,” and “Despicable Me 4” filled local multiplexes.
Melissa Thomas, Cinemark’s chief financial officer, said the company’s share of the NATO investment will be about $200 million a year for circuit upgrades, and that increased ticket sales expectations and cash flow generation will help boost Hollywood box office revenue. The company said it could increase that amount to $250 million a year by leveraging the recovery in revenue.
