Cinemark Holdings Posts Record Quarterly Revenue Amid Strong U.S. Box Office
The movie theater operator earned positive reviews from analysts as its latest earnings rose 41 percent.
Movie theater chain Cinemark Holdings on Friday reported much-improved third-quarter financials, including what it said was record quarterly revenue, attendance
and operating cash flow.
The company posted a quarterly profit of $47.6 million, compared to a year-ago profit of $33.9 million. Net income attributable to Cinemark shareholders rose 41 percent to $46.9 million.
Revenue rose 14.2 percent to $640 million as admissions revenue increased 13.5 percent to $417.1 million and concession revenue jumped 14.5% to $194.8 million. The growth was driven by a 5.6 percent increase in attendance, a 7.3 percent rise in average ticket price and an 8.5 percent gain in concession revenue per patron.
"Cinemark achieved all-time record quarterly performance for the 2011 third quarter," said Cinemark CEO Alan Stock. “The 2011 third quarter was the highest-grossing North American box office period in history, which marks the second quarter in a row that the industry has set a record for box office performance. We are proud to have again extended Cinemark’s box office outperformance streak, as Cinemark’s domestic quarterly box office has now exceeded North American industry box office for twelve consecutive quarters and our international segment admissions revenue again outpaced our industry-leading domestic operations for the thirteenth consecutive quarter on a constant dollar basis.”
Wall Street observers gave the earnings report a thumbs-up. Lazard Capital Markets analyst Barton Crockett wrote that "Cinemark continued its multi-quarter streak of big outperformance." And MKM Partners analyst Eric Handler said: "We expect the shares of Cinemark to react positively to another quarter of better-than-expected results."
Wedbush Securities analyst Michael Pachter had upgraded his rating on Cinemark ahead of the earnings report from "neutral" to "outperform," arguing that "valuation is now attractive relative to [the company's] peer group."