Are Cinema's Finally Bouncing Back? Cinemark's Q1 Profit Paints A Bright Picture
Cinemark Holdings Inc (NYSE:CNK) reported a fiscal first-quarter 2024 sales decline of 5.2% year-on-year to $579.20 million, beating the analyst consensus of $560.38 million. EPS of $0.19 beat the analyst consensus loss of $(0.20).
Admissions revenue decreased 6.8% to $289.8 million, and concession revenue declined 4.9% to $224.2 million, driven by a 7.5% decrease in attendance to 39.7 million patrons.
The worldwide average ticket price was $7.30, and concession revenue per patron was $5.65.
As of March 31, 2024, the company's aggregate screen count was 5,708, and the company had commitments to open three new theatres and 33 screens over the next two years.
The company generated $70.7 million of adjusted EBITDA in the quarter versus $86.2 million a year ago.
Cinemark held $788.6 million in cash and equivalents as of March 31, 2024.
"2024 North American industry box office has kicked off better than expected, declining only modestly versus 2023 despite last year's strike-induced headwinds," stated Sean Gamble, Cinemark's President and CEO.
Cinema operators are doling out deals and discounts to entice moviegoers as threats loom from streaming content.
Cinemark Holdings stock gained close to 4% in the last 12 months. Investors can gain exposure to the stock via Invesco S&P SmallCap Utilities & Communication Services ETF (NASDAQ:PSCU) and Invesco Leisure And Entertainment ETF (NYSE:PEJ).
Price Action: CNK shares are trading higher by 0.30% at $17.48 at the last check Friday.
Photo via Wikimedia Commons
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