Cinemark Holdings Inc (CNK) has reported impressive sales growth for the fourth quarter of fiscal year 2023, surpassing analyst expectations. The company’s sales increased by 6.5% year-on-year to reach $638.9 million, beating the consensus estimate of $619.7 million.
Furthermore, Cinemark managed to narrow its net loss to $18.0 million, compared to a loss of $99.3 million in the same period the previous year. However, the company’s earnings per share (EPS) loss of $(0.15) fell short of the analyst consensus of $(0.13).
The increase in sales can be attributed to a rise in admissions and concession revenue. Admissions revenue rose by 5.8% to $322.4 million, while concession revenue increased by 7.7% to $243.0 million. This growth was driven by a 3.6% increase in attendance, with 40.6 million patrons visiting Cinemark theaters during the quarter.
The average ticket price worldwide was $7.94, and concession revenue per patron amounted to $5.99. These figures highlight the company’s ability to generate revenue from both ticket sales and concessions, indicating a strong performance in its core business operations.
Looking ahead, Cinemark has plans to open five new theaters and 43 screens over the next two years. As of December 31, 2023, the company had a total screen count of 5,719. These expansion plans demonstrate the company’s commitment to growth and its confidence in the future of the movie theater industry.
Cinemark also reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $79.6 million in the quarter, compared to $73.5 million in the same period last year. This increase in adjusted EBITDA reflects the company’s improved operational performance and financial discipline.
The company ended the quarter with cash and equivalents worth $849.1 million, highlighting its strong financial position. CEO Sean Gamble expressed satisfaction with the company’s performance, stating that key indicators related to consumer behavior and product flow were positive. He attributed the outstanding results to the team’s operational execution and financial discipline.
Despite the positive news, Cinemark’s stock price has experienced a decline of 3.81% in premarket trading, reaching $17.18 per share. This downward movement may be influenced by broader market conditions or investor reaction to the company’s earnings report.
In conclusion, Cinemark Holdings Inc has delivered strong sales growth in the fourth quarter of fiscal year 2023, outperforming analyst expectations. The company’s ability to increase attendance, generate revenue from admissions and concessions, and maintain a solid financial position bodes well for its future prospects. With plans for expansion and a strong operational performance, Cinemark is positioning itself for continued success in the movie theater industry.
