Movie giant Cinemark Holdings improved in its latest quarter, reporting higher profit on Friday and the industry’s continued recovery from the COVID-19 pandemic.
The company, led by chairman and CEO Sean Gamble, who replaced Mark Zorad on Jan. 1, posted a quarterly loss of $73.4 million. This compares with a loss of $142.4 million in the same period in 2021. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), another profitability metric, rose to $138.3 million in the three months. . US$ 11.8 million.
Second quarter revenue increased 153% to $744.1 million, a year-over-year increase due to higher participation and benefits costs. Finally, due to the COVID pandemic, “during part of the three months that ended on June 30, 2021, some of the company’s cinemas were closed and limited to the content of new films for reopened cinemas”, he signed. the company.
Among the major theatrical releases in the second quarter were similar Top Gun: Maverick, Doctor Strange in the Multiverse of Madness s jurassic world domain.
“Continued improvement in consumer confidence, as well as more consistent releases of compelling new films with broad consumer appeal and a unique theatrical window, have delivered the highest quarterly box office since the start of COVID-19,” said Gamble. “Cinemark fully demonstrated this sustained recovery in the second quarter, including at the domestic box office, which outperformed the North American industry by more than 300 basis points, the highest share of all major exhibitors in Q2 2022 in 2019.”
He added, “Additionally, our second-quarter revenue in Latin America exceeded its respective industry benchmark by approximately 400 basis points over the same period.”
On the earnings call, Gamble emphasized how the movie chain’s finances will be affected by upcoming films, not economic problems.
“As concerns grow about a possible recession in the United States. It’s important to remember that theatrical films offer a premium away-from-home entertainment experience at a reasonable price, and the domestic box office has actually grown in three of the last four recessions,” Gamble said of earnings.
However, that means the company’s third-quarter results are likely to be affected by a drop in new film volume over the next two months, which Gamble said was due to seasonality and pandemic-related production delays. AMC warned of a similar impact on its earnings.
After that drop, the company expects a boost from upcoming 2022 movies like the David O. Russell movie. amsterdam, Black Panther: Wakanda Forever and DC Comics’ black adamWith Dwayne Johnson. Looking ahead to 2023, Gamble noted a strong schedule of launches in the first half of the year, including Ant-Man and the Wasp: Quantumania, Guardians of the Galaxy Vol. 3, John Wick: Chapter 4 s He had a mermaid.
Building on the movie theater chain’s recovery since the pandemic began, Cinemark said it has invested in new branding and marketing materials, including a new logo.
The CEO concluded: “As a result of our sustained investments over the years, the operational improvements we have made during the pandemic, and the continued progress we are making through our strategic initiatives, we believe that Cinemark remains well positioned to navigate the current process. . Rebuilding our industry and making the most of its continued renaissance.”
Based in Plano, Texas, Cinemark has 520 theaters with 5,849 screens in 42 US states and 15 countries in South and Central America. His circle includes several brands including Century, Tinseltown and Rave.
Source: Hollywood Reporter
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