Cinemark Posts Record Revenue as International Growth Leads
Attendance reached 63.7 million patrons, rising 10% from a year earlier.
Cinemark Holdings (CNK), the movie theater operator, reported record second-quarter revenue as stronger attendance and higher spending per patron lifted sales across its markets. Revenue rose 15.5% to $1.086 billion, though growth slowed from 18.9% in the first quarter.
The quarter marked a sharp profitability turn after three consecutive declines in adjusted EBITDA margin. The margin climbed to 27.1% from about 13.8% in the first quarter, finishing 10 basis points below Cinemark’s all-time quarterly record. Adjusted EBITDA more than tripled sequentially to $294.0 million and rose 26.6% from a year earlier.
Revenue increased 68.9% from the first quarter as attendance climbed 63.3%. Net income attributable to Cinemark rose 49.1% from a year earlier to $139.4 million, while diluted earnings increased to $1.19 a share from $0.63 a share. The company had recorded a first-quarter loss of $6.4 million, or $0.06 a share.
Higher patron spending supplemented the attendance gains. Worldwide average ticket price rose 5.1% from a year earlier to $8.48, while concession revenue per patron increased 4.3% to $6.80. Admissions revenue climbed 15.6% to a record $540.0 million, and concession revenue rose 14.7% to a record $433.3 million.
International operations grew faster than the U.S. business. International revenue increased 24.9% to $226.4 million, compared with a 13.3% rise in U.S. revenue to $860.0 million. International adjusted EBITDA advanced 36.1% to $60.0 million, while U.S. adjusted EBITDA rose 24.4% to $234.0 million.
Cash generation strengthened alongside earnings. First-half operating cash flow increased to $339.7 million from $156.8 million, and free cash flow rose to $240.4 million even as capital expenditures nearly doubled. Cinemark ended the quarter with $504 million in cash, up from $262 million three months earlier, while net leverage declined to 2.0 times from 2.6 times.
Cinemark returned $36 million to shareholders during the quarter through $25 million of stock repurchases and $11 million of dividends. The company also repriced its term loan, cutting the interest rate by 25 basis points and projecting $1.6 million in annual cash-interest savings.