Cinemark Lost $78 Million in the Summer Quarter

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Cinemark lost nearly $78 million in the third quarter of 2021. That was a much lighter loss than last year, when the majority of movie theaters were still closed due to the global coronavirus pandemic, but it was rougher than media analysts had estimated.

Wall Street predicted Cinemark would lose 57 cents per share on $438.72 million in revenue, according to a consensus estimate compiled by Yahoo Finance. Cinemark reported a loss of 65 cents per share on $434.8 million in revenue.

Admissions revenues were $225.5 million and concession revenues were $164.2 million, Cinemark reported on Friday. Attendance was 30.7 million patrons. The average ticket price was $7.35 and concession revenues per patron were $5.35.

As of Sept. 30, 2021, the company’s aggregate screen count was 5,897. Cinemark has commitments to open two new theaters and 33 screens during the remainder of 2021, and 12 new theaters and 112 screens after 2021.

“As an industry, and as a company, we continue to make significant progress recovering from the effects of the pandemic,” Mark Zoradi, Cinemark’s CEO, said in a statement accompanying the financials. “We are highly encouraged by sustained positive trends in escalating consumer demand for theatrical moviegoing and growing momentum at the box office.”

“This favorable progress was clearly demonstrated in our 61% quarter-over-quarter growth in worldwide attendance, which flowed through to our bottom line as our third quarter net loss reduced $64.7 million dollars from the second quarter and Adjusted EBITDA improved to $44.3 million dollars,” he continued. “This was the first quarter since the pandemic began that we generated positive Adjusted EBITDA in every month of a quarter, tangibly underscoring our resurgence.”

“We expect a continued ramp-up in box office performance over the course of the coming months, and October already delivered the best monthly box office results since the onset of COVID-19,” Zorardi concluded his prepared, written remarks. “As the pandemic further subsides, we remain confident in the future of theatrical moviegoing based on the unparalleled cinematic experience it provides coupled with a robust content lineup in the fourth quarter and beyond that features highly anticipated films with something for everyone.”

As previously announced, Zoradi is stepping down at the end of the year.

Shares of Cinemark closed Thursday afternoon at $20.44 apiece. The U.S. stock markets reopen at 9:30 a.m. ET.

Cinemark executives will hold a conference call at 8:30 a.m. ET to discuss the quarter in greater detail.

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