PLANO, Texas - Cinemark Holdings, Inc. (NYSE: NYSE:CNK), a leader in the motion picture exhibition industry, announced a robust first quarter that exceeded Wall Street expectations, with shares climbing 5% in response to the earnings and revenue beat.
The company reported a first-quarter EPS of $0.19, significantly surpassing the analyst consensus of -$0.19. Total revenue for the quarter was $579 million, also beating the analyst forecast of $557.61 million.
Cinemark's financial performance reflects a successful navigation through a challenging operating environment, marked by strike-induced headwinds. The company entertained 40 million moviegoers globally, with domestic box office results outpacing the North American industry recovery relative to the first quarter of 2019 by over 700 basis points. International admissions exceeded Latin American industry recovery by approximately 600 basis points. This growth in market share, both in the U.S. and Latin America, highlights Cinemark's competitive edge and strategic positioning within the industry.
Compared to the same quarter last year, total revenue saw a slight decrease of 5.2% from $610.7 million, with admissions revenue down by 6.8% to $289.8 million and concession revenue decreasing by 4.9% to $224.2 million. This was primarily driven by a 7.5% decline in attendance to 39.7 million patrons. Despite these challenges, the company managed to turn around its net income to $25 million, a significant improvement from the loss of -$3.1 million in the first quarter of 2023.
Sean Gamble, President and CEO of Cinemark, attributed the strong quarter to the company's exceptional team and their ability to outpace the market. "Our sensational team once again demonstrated their skillful ability to navigate a dynamic operating environment, delivering results that outpaced the market," said Gamble. He also expressed optimism about the future, citing positive indicators such as consumer moviegoing patterns, film volume recovery, and strength of content appeal.
The company's balance sheet was further strengthened by the redemption of the remaining $150 million of COVID-related 8.75% senior secured notes, highlighting confidence in Cinemark's long-term prospects. With a healthy cash balance of $789 million at the quarter's end, Cinemark remains well-positioned to continue its growth trajectory and capitalize on its competitive advantages.
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