The rebound of cinema is real, but so is the shortage of films, says Sean Gamble, CEO of Cinemark, after the circuit posted strong results in the first quarter.

Cinemark CEO Sean Gamble says the relative lack of new films is arguably the biggest drag his company faces this year.

“Many moved in 2023” for Covid-related reasons, Gamble explained when discussing the company’s first quarter earnings, and there is also a broader overhaul of the film’s window as major studios enter the mainstream. . “We expect it to be a year-round challenge; we don’t see these gaps being filled. “

The 3rd US Expo announced first quarter results that exceed Wall Street expectations. Total revenue was $ 460.5 million, up from $ 114.4 million in the prior quarter. Analyst consensus estimates were $ 447 million.

The loss fell to 62 cents on the stock from $ 1.75 a year ago, beating the valuation by one cent.

Gamble said he expects Cinemark to reach a “normal level” of box office receipts by 2024. For now, he predicted that the complications of Covid would ease and “the streaming platforms would be in a much more mature place.” “That’s when the rock changes.”

Asked whether streaming services could contribute more to theatrical releases to compensate for studios that backtrack or move movies to stream, Gamble said: “There really is potential. This is not a dream. These are real opportunities ”.

Cinemark has conducted a number of rehearsal initiatives with Netflix, including a week-long national theater engagement. army of the dead In 2021.

Low- or mid-budget movies that are nearly extinct as exclusive theatrical releases should be reinstated as the improved Covid environment lightens, Gamble said.

“Obviously, there is a common economic and advertising value to theatrical release of these types of films, because they reinforce these films based on how they perceive, economically, brand building, a desire to simply be a creative community. “These films have been released,” the executive said. “So I think everything will turn out the other way around.”

Gamble added that this is changing as the entire industry moves away from an exclusive 72-90 day film window in favor of a more flexible approach. Today “movies have a better financial model. A better economic equation for these degrees is for studies with the ability to enter homes earlier. So just because there are fewer risks and a better financial model, that too, I think, can lead to theatrical releases of these films.

CFO Melissa Thomas, who joined the company last fall, repeatedly mentioned during the phone call that the club is struggling with the impact of inflation on its business.

He said Cinemark would “develop a more dynamic pricing model”. “It’s too early,” he said, “but the increase in ticket prices, whether targeted, data-driven or in general, is ‘one of many levers to offset inflation.’

One of the assets the company has, according to Marshall, is its movie club, which opened in late 2017. For $ 10 a month, members get a ticket and perks like rebate discounts. Despite Covid’s two-year influence, movie club membership levels are approaching 1 million by 2019. In the first quarter, Gamble said, 20% of the company’s box office revenue came from club members.