Fri, Aug 2, 10:47 AM (88 days ago)
Cinemark Holdings, Inc. and Cinemark USA, Inc. reported a decline in revenue for the quarter ended June 30, 2024, compared to the same period in 2023. Total revenue was $734.2 million, down from $942.3 million. The decrease was due to lower admissions and concession revenue, which fell by 23.6% and 21.6%, respectively. This decline was driven by a lower concentration of high-grossing titles and the impact of the Hollywood strikes. Average ticket prices and concession revenue per patron increased slightly due to strategic pricing actions and inflationary pressures. Operating costs decreased to $651.3 million from $773.9 million, primarily due to lower film rentals, advertising costs, and utilities. However, general and administrative expenses increased to $55.7 million from $50.0 million due to higher wages and benefits. Interest expense decreased slightly, while other income and equity in income of affiliates increased. The company also recorded a loss on debt amendments and extinguishments of $2.5 million. Cinemark Holdings reported a net income of $46.6 million, down from $120.4 million in the prior year, largely due to the lower revenue. The effective tax rate was favorably impacted by changes in valuation allowances in certain foreign jurisdictions. The company expects its existing cash and expected cash flows to be sufficient to meet its working capital and capital expenditure requirements for the next twelve months and beyond.