Cinemark shares drop on second quarter devaluation, higher costs; The CEO sees the next two months challenged by fewer releases

Cinemark, which saw second-quarter finances rise at the box office, said August and September would be more difficult as release volumes slow.

CEO Sean Gamble told Wall Street that the country’s third largest exhibitor is bullish when it comes to business, but the pace of the current recovery depends on consumer sentiment regarding the pandemic, sustained quality and a variety of new movie. Number of releases.

After leading a string of box office hits top Gun: Hipster, The industry is bracing for the slowdown in seasonality, production delays linked to the pandemic and changes in film release dates. Peaks of late autumn and winter, with highlights Black Adam, Black Panther: Wakanda Forever. Puss in Boots: The Last Wish. Shazam: Wrath of the Gods, Avatar: The Channel etc.

Cinemark had previously reported a drop in revenue for the three months ending June. The former rose 152% to $ 744 million from $ 294 million. Admission revenue was $ 382 million and concession revenue was $ 286 million, led by 52 million ticket buyers participation at an average ticket price of $ 7.34 and concession revenue for sponsor of $ 5.50.

A loss of $ 73.4 million compared to a loss of $ 142 million the year before: 61 cents versus $ 1.19 per share. The red ink included a $ 92 million devaluation and higher costs for renting films and advertising, providing benefits, salaries, utilities, and leasing costs – total expenses at $ 762 million from $ 380 million.

Wall Street sent shares down 13%.

In these and other calls, investors are more focused on the return of mid-range films. The understandable excitement generated by the mobilized superhero demos will result in a more realistic view of the long-term prospects of the business.

Blockbusters cost more than renting movies. A greater variety of films will attract a wider range of viewers, which is essential for a full shoot. The exhibitors said the same thing. Gamble sees strong numbers for non-franchised companies like Elvis, the lost city and where the lobsters sing as a good sign. “I think in the next year or two we will see it normalize to pre-pandemic levels.”

Gamble pointed out that tough economic times – high inflation, high interest rates, and a possible recession – have always been a boon to cinemas.

“Continued improvement in consumer confidence, as well as more consistent releases of compelling new films with broad consumer appeal and a unique cinematic window, have produced the highest quarterly grossing since the start of Covid-19,” he said. . “As a result of our sustained investments over the years, the operational improvements we have made during the pandemic and the continued progress we are making through our strategic initiatives, we believe Cinemark remains exceptionally well positioned to address our level recovery. “industry and make the most of its continued revival”.