Cinemark Third-Quarter Attendance, Earnings Drop
The weak summer box-office was a drag across the industry, with the company also citing the soccer World Cup as a key factor
Movie theater operator Cinemark Holdings on Thursday reported lower third-quarter financials amid decreased attendance in the U.S. and the company's international markets.
Hollywood had a weak box-office summer, which was a drag on all industry players' latest quarterly results, including those from Regal Entertainment Group. But Cinemark, which has a strong presence in Latin America, on Thursday cited the soccer World Cup in Brazil as one key factor affecting its results.
Earnings of $38.1 million compared to $80 million in the year-ago period. Quarterly revenue of $646.9 million was down from $757.6 million. The results came in slightly below Wall Street expectations.
Stifel Nicolaus analyst Benjamin Mogil said the financials were in line with his expectations, but "modestly stronger domestic performance [was] offset by weaker international performance" than he had projected.
Admissions revenue amounted to $402.9 million in the quarter, down from $479.6 million in the year-ago period, as attendance dropped to 66.2 million from more than 81 million in the year-ago period. Concession revenue fell to $211.1 million from $242.3 million. Average ticket prices increased 2.9 percent to $6.09, and concession revenue per patron rose 6.7 percent to $3.19 during the three months ending Sept. 30.
Said Cinemark CEO Tim Warner: "We are pleased with our results considering we faced a much higher hurdle than our peers with a 650 basis point domestic industry outperformance in the third quarter of 2013 and the head winds of the World Cup in Brazil. We continue to benefit from our strategic, diverse global platform and attribute our strong performance to our sustained emphasis on attendance growth."