Cinemark Beats Q3 Forecasts With Gains At Overseas Theaters

Cinemark looked like two different companies in the quarter that ended in September. The part with the U.S. theaters delivered blah results compared to last year, while the Latin American-focused international side was on fire. All together, the company reported net income of nearly $48M, +6.7% vs the period last year, on revenues of $633.6M, -1%. The revenue figure was ahead of the Street’s forecast for $626.8M. Earnings per share, at 41 cents, also beat projections for 35 cents. “Not only is the international box office growing faster than domestic revenues, but there are stronger socio-economic trends in those regions along with significantly better new theater growth opportunities,” says B. Riley & Co analyst Eric Wold. The U.S. theaters ended up with revenues of $416.2M, -5.7%. Attendance was down 7.4% to 41.1M. The average ticket price fell three cents to $6.44 but the average concession spending per patron was up 16 cents to $3.29. In contrast, Cinemark’s overseas revenues were up 9.4% to $220.6M. Attendance rose nearly 14% to 28.5M, outweighing the 39 cent drop in the average ticket price to $4.81. Concession prices per patron abroad were up three cents to $2.26. “As our results consistently demonstrate, Cinemark has designed a company with a strong and stable domestic base, which supports our substantial quarterly dividend, accompanied by our international circuit, which represents a long-running growth engine and differentiates us from all of our industry peers worldwide,” CEO Tim Warner says.

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