Cinemark 2Q Climbs on Higher Attendance, Pricier Tickets

By FOXBusiness

Led by higher prices and admissions in both the U.S. and abroad, Cinemark (NYSE:CNK) revealed on Friday a sharp boost in second-quarter revenue, though its profit improved just slightly and fell narrowly short of Wall Street expectations.

The Plano, Texas-based motion picture exhibition business booked net income of $41 million, or 35 cents a share, compared with $40.7 million, or 35 cents a share, in the same quarter last year.

Continue Reading Below

Analysts polled by Thomson Reuters were expecting slightly better earnings of 40 cents a share. Revenue for the three months ended June 30 was $620.6 million, up 15.1% from $539.4 million a year ago, widely beating the Streets view of $593.5 million.

This quarter Cinemark generated its highest ever quarterly worldwide attendance and as a result we achieved our highest ever quarterly Adjusted EBITDA, the companys chief executive, Alan Stock, said in a statement. This record performance extended our domestic industry box office out-performance streak to eleven straight quarters.

The stronger results were led by a 15% improvement in admissions revenues to $405.9 million and 14.6% gain in concessions sales to $189.3 million. Attendance climbed 9.8% during the period and ticket prices grew 4.6%.

Cinemark's international circuit continues to improve, according to Stock, who noted that its attendance growth is about four times the U.S. industry rate for the quarter.

What do you think?

Click the button below to comment on this article.