Cinemark’s net income plunged 42% on a nearly 8% decline in revenue for the third quarter ending Sept. 30, with the exhibitor blaming the “weak consumer appeal” of Hollywood’s summer slate.
Net income of $38.1 million compared with $65.7 million a year ago. Revenue came in at $710.8 million compared to $768.6 million in the same period a year ago.
Admissions contributed $425.1 million to total revenue and concessions accounted for $247.1 million. Concession sales per patron increased 7% to $3.67 and average ticket price increased 2% to $6.32.
“We continued our trend of outperforming the North American box office in the third quarter, beating industry results by approximately 200 basis points. We have now exceeded market growth for 31 out of 35 quarters,” said CEO Mark Zoradi. “We are pleased to yet again deliver consistent results, despite the weaker consumer appeal of this summer’s film content, and we remain enthusiastic about the long-term prospects of our industry and film line-up for the remainder of 2017 and beyond.”
Cinemark made two announcements along with the quarterly results. It set plans to launch a monthly subscription program roughly comparable to MoviePass but at a higher price point, though it added no details about pricing or the timing of the rollout. It also said it was entering the virtual-reality space with a lobby attraction at its Dallas flagship megaplex produced by VR specialist The Void.
The circuit, which has 5,957 screens, also noted that 38% of its auditoriums now feature recliner seats and reserved seating, with 40% likely by year-end.
The company’s stock was down 4% in midday trading, at $33.81. Other exhibition stocks, including AMC Entertainment (which reports quarterly numbers Monday) and Regal, are also in the red.