Cinemark saw revenue and profit dip for the three months ended in September on a softer box office but the nation’s third largest theater chain will boost its quarterly dividend (by 12.5%) and set a new $300 million share repurchase program “reflecting the strength of our financial position and continued confidence in our strategic direction and outlook.”
It also said it has eliminated remaining pandemic-related debt through the settlement of $460 million convertible notes.
Shares rose 3% in pre-market trading as revenue eased 7% to $857 million, beating forecasts, with admissions at $430 million and concession at $337 million on attendance of 54.2 million patrons.
Net profit fell to $51 million, or 40 cents per diluted share, from $189 million in the year-earlier quarter.
The Plano, Texas-based exhibitor said it generated its second highest quarterly box office ever for non-traditional programming. Revenue from immersive D-Box seating hit a high.
“We believe Cinemark is well-positioned to continue thriving as we move forward based on our many distinctive advantages, the unparalleled value proposition we offer consumers, the ongoing initiatives we are advancing, and further improvements that are expected in film release volume, scale, and variety,” said CEO Sean Gamble., who will host a call at 8:30 ET.
He called the company “enthusiastic about a strong finish to 2025 that is supported by one of the most robust and diverse holiday film slates we have seen in recent history.”
It’s been glum at the box office with fewer breakouts as the industry struggles to lift grosses from 2024 levels. Marcus Theatres, the no. 4 chain, last week anticipated a major lift from Wicked: For Good opening later this month. noting pre-sale were trending over three times ahead of pre-sales for last year’s Wicked.
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