Cinemark Earnings Rise as Box Office Rebounds

Cinemark Holdings posted a sharp increase in earnings for the three months ended September 30, benefiting from a stronger slate of summer movie releases. The Plano, Texas-based theater chain reported revenue of about $1.05 billion, compared with $857.5 million in the same quarter a year earlier. The company described the quarter as its strongest third-quarter revenue performance on record.

Net income rose to about $123 million, from roughly $50 million a year earlier. Earnings were $1.04 per share, above the 97-cent average estimate from analysts surveyed by Zacks Investment Research. Revenue also exceeded their average forecast of $1.03 billion.

Admissions revenue increased to $530.8 million from $427.7 million, while concession sales rose to $413.9 million from $336.7 million. Adjusted operating earnings before interest, taxes, depreciation and amortization reached $276.6 million, up from $177.6 million in the prior-year quarter. Cinemark also recorded a 50% year-over-year increase in premium large-format box office revenue, surpassing its previous record for that category by 20%.

Chief Executive Sean Gamble said the company had carried summer box-office momentum into meaningful earnings growth, citing its operating model and strategic initiatives. He said Cinemark remained confident in its longer-term prospects, pointing to consumer trends, movie content and the company’s competitive position.