Cinemark Swings to First-Quarter Loss Amid “Suppressed Box Office Environment”

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For the initial quarter of 2025, Cinemark, a major player in exhibitions, reported a revenue decrease of 7% from the previous year, totaling $541 million as opposed to the $579 million it brought in during the same period last year. Interestingly, this financial dip led to a quarterly loss of $39 million, contrasting with the profit of $25 million they had at this time in 2024.

However, the firm announced: “The pace of North American cinema earnings growth picked up speed in April, almost doubling compared to the same period last year. This strong start indicates a promising lineup for the upcoming blockbuster movie season.

In the last quarter, Cinemark’s admission revenue fell by 8.9% to reach $264.1 million, while their concession revenue dipped by 6.2% to hit $210.4 million. This decline was reflected in a decrease of 7.8% in the number of patrons visiting Cinemark, which totaled 36.6 million. The average price of a ticket globally stood at $7.22, and each patron spent an average of $5.75 on concessions.

During the recent quarter, Cinemark’s admissions revenue dropped by 8.9% to reach $264.1 million, with their concession revenue also declining by 6.2% to $210.4 million. This decrease was due to a fall of 7.8% in the number of visitors to Cinemark, amounting to 36.6 million patrons. The worldwide average ticket price was $7.22, and each patron spent an average of $5.75 on concessions.

Or even more casually:

Last quarter, Cinemark saw a dip in both their admissions revenue (by 8.9%) and concession revenue (by 6.2%). This drop was due to fewer people visiting their theaters (down by 7.8%), with a total of 36.6 million patrons. The average ticket price globally was $7.22, while each patron spent an average of $5.75 on snacks and drinks.

In addition to their reported earnings, the company also announced a decrease in quarterly EBITDA – a different measure of profitability – from $70.7 million last year to $36.4 million this time around.

Cinemark has once again exceeded expectations in the first quarter, outperforming industry standards not just domestically but globally as well,” stated president and CEO Sean Gamble. “The box office environment remains somewhat subdued due to the aftermath of the 2023 Hollywood strikes, yet we are optimistic about a swift recovery in our industry this year. The second quarter is already demonstrating promising results, surpassing the box office earnings from the same period in 2024, indicating that audiences continue to show strong and lasting interest in immersive theater experiences featuring a variety of captivating, well-promoted films.

He stated: “Looking forward, we are greatly optimistic about the trajectory of our industry and our company. This confidence is bolstered by robust consumer habits, a recovery in large-scale film releases, Cinemark’s strong financial and competitive positions, and potential for additional value creation through our ongoing strategic endeavors.

Reflecting on our company’s robust health and optimistic future, I’m thrilled to announce that we recently distributed our first dividend since the pandemic, during the latest quarter. Moreover, we executed a significant $200 million in share repurchases – a milestone that kick-started our inaugural stock buyback program. This strategic move positions us as proactive leaders, mitigating potential dilution associated with our forthcoming convertible notes settlement.

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2025-05-02 14:24