Cinemark Holdings Inc. underwent a 3% increase in its stock early on Friday, driven by the cinema operator’s fourth-quarter revenue exceeding expectations, which helped alleviate concerns about a larger-than-expected loss.
The Plano, Texas-based company, Cinemark (CNK), disclosed a net loss of $18 million, corresponding to 15 cents per share, for the quarter.
This showcases an improvement from the same period last year when the company recorded a loss of $99.3 million, or 82 cents per share. Meanwhile, revenue displayed a significant rise, climbing by 6.5% to hit $638.9 million.
In contrast to the FactSet consensus of a 7-cent loss and revenue of $620.0 million, Cinemark’s performance surpassed expectations.
The company wrapped up the quarter with a total of 5,719 screens across the United States and plans to open five new theaters and add 43 additional screens within the next two years.
Cinemark’s Chief Executive, Sean Gamble, shared optimism about the company’s future, expecting to benefit from the ongoing recovery in the industry following the pandemic-induced downturn.
In 2023, a cinematic phenomenon dubbed “Barbenheimer” emerged, as movie buffs aimed to catch the two major summer blockbusters, “Barbie” and “Oppenheimer,” on the same day post-release.
This led to “Barbie” surpassing $1 billion in August, a historic feat that positioned director Greta Gerwig as the first female director to reach such heights.
During the quarter, Cinemark disclosed an impressive attendance of over 40 million moviegoers at its theaters, with a substantial total of 210 million for the entire year of 2023.
Moreover, the company attained a record-high food and beverage per capita of $4.68 for the year. Despite a 25% decrease in attendance compared to 2019, concession revenue exceeded the previous year’s by 3%.
Admissions revenue witnessed a 5.8% surge, totaling $322.4 million in the quarter, while concession revenue saw an even more notable increase, rising by 7.7% to $243.0 million.
In the last 12 months, Cinemark’s stock has shown an impressive 40% gain, surpassing the S&P 500, which saw a 23% increase during the same period.
This upward trend mirrors investors’ trust in the company’s resilience and capability to overcome challenges in the cinema industry.
