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Cinemark Stock Pops On Record Q3 Revenue
Cinemark reported its strongest third quarter on record, with revenue rising 23% to $1.1 billion as the box office recovered. The results point to stronger cinema attendance and spending, while the company’s shares rose about 4% in premarket trading.
For the three months ended in September, attendance increased to 37.4 million from 33.2 million, and average ticket prices rose to $11.16 from $10.50. Net income climbed to $123 million, or $1.04 a share, from $49.5 million; Cinemark also reported $66 million in free cash flow and expects full-year capital investment of about $250 million.
In short
- Cinemark’s third-quarter revenue rose 23% to a record $1.1 billion.
- Attendance and ticket prices both increased year on year.
- Net income reached $123 million, up from $49.5 million.
Explained simply
Cinemark is a US cinema chain that earns money from ticket sales and from food and drink bought at its theatres. Its business depends partly on how many people go to the cinema and how much they spend on each visit.
Cinema chains were hit hard when the pandemic closed theatres and disrupted film releases. Their recovery depends on audiences returning and studios supplying films that draw people to cinemas; attendance and ticket prices help show how that recovery is progressing.
Investors follow these figures to judge whether Cinemark can generate profits and cash to run and improve its theatres. Its results also offer a measure of how the cinema business is faring as audiences return.
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