Cinemark Posts Best Third Quarter Ever as Revenue Climbs 23%
Cinemark, the third-largest cinema chain in the United States, reported revenue of $1.1 billion for the three months to September, up 23%, according to Deadline. It was the company's best third quarter on record. Its shares were up about 4% in premarket trading.
The Plano, Texas company said ticket sales, which it calls admission revenue, rose to $530.8 million from $429.7 million a year earlier. Attendance climbed to 37.4 million people from 33.2 million. The average ticket cost $11.16, up from $10.50.
Snack and drink sales grew faster still. Concessions revenue rose to $414 million from $337 million, and each moviegoer spent $8.66 on food and drink, compared with $8.20 a year earlier.
The biggest jump came in premium large format screens, the giant-screen and upgraded-sound auditoriums that charge more per seat. Box office takings in those rooms rose 50% year on year. Cinemark said they beat the chain's previous record by 20%.
Profit moved sharply too. Net income reached $123 million, against $49.5 million a year earlier. Earnings per share were $1.04, compared with $0.40.
Cash was also healthy. The company generated $136 million from operations and $66 million of free cash flow, which is the money left after spending on buildings and equipment. It spent $70 million on capital projects during the quarter and $170 million so far this year. It expects to spend about $250 million over the full year and ended the quarter with $556 million in cash.
The result beat a forecast. Analysts polled by Yahoo Finance had expected about $1.02 billion in revenue, which would have meant growth of roughly 19.5%.
The quarter follows a strong summer. In late July, Cinemark reported that its second quarter was the first in its history to pass $1 billion in worldwide revenue. Revenue for that period was $1.09 billion, up 15.5% from $940.5 million a year earlier, The Hollywood Reporter reported.
Why it matters for moviegoers is simple. Cinemark is making more money from each visit, through pricier seats, bigger screens and popcorn, as well as from the number of people walking in. The company has not said how long that pattern will last.
