Cinemark Holdings, a major movie theater chain, has reported its first-quarter revenue for 2024, showing a slight decline compared to the previous year. Despite facing challenges from the Hollywood strikes in 2023, the company managed to beat Wall Street analysts’ estimates.
The revenue for the first quarter was reported at $572.9 million, down 5 percent from the prior year. This decline was attributed to a decrease in overall attendance, with 40.0 million patrons visiting Cinemark theaters globally, compared to 42.9 million in 2023. Admissions revenue and concession revenue also saw a decrease, reflecting the impact of lower attendance on food and drink sales.
However, Cinemark reported a net profit of $24.8 million, a significant improvement from the loss of $3.1 million in the previous year. This was partly due to a gain of $27.7 million from an income tax benefit. The company’s diluted earnings per share also showed a positive trend, with 19 cents per share compared to a loss of 3 cents per share in the prior year.
Cinemark CEO and president, Sean Gamble, highlighted the strong performance of Hollywood titles like “Dune: Part Two,” “Kung Fu Panda 4,” and “Bob Marley: One Love” during the quarter. He expressed optimism about the industry’s recovery post-Hollywood strikes and noted the continued enthusiasm of consumers for the theatrical experience.
Gamble also discussed the potential for mergers and acquisitions in the industry, indicating that Cinemark may target high-quality assets in the coming year. Despite inflationary pressures in the economy, he remains confident in the resilience of the movie theater business and its appeal to consumers.
Following the positive financial results, Cinemark’s stock rose by 5 percent in pre-market trading on Thursday, reflecting investor confidence in the company’s performance and future prospects.