Products You May Like
Cinemark, the nation’s third-largest theater chain, and smaller Marcus Theatres piled on strong financial results Thursday after sunny numbers from Imax on Wednesda –, all bright notes amid ongoing box office uncertainty.
Marcus shares popped by more than 10% on the numbers. The Milwaukee-based chain “achieved growth with a markedly improved film slate that played particularly well with audiences in our markets,” said chairman-CEO Greg Marcus. “As we look ahead to the remainder of the year and into 2025, we are encouraged by trends within both businesses, including an impressive array of high-quality films headed for the big screen this holiday season.”
Cinemark chief executive Sean Gamble said “strong, sustained consumer enthusiasm for shared, larger-than-life, theatrical experiences was once again on full display in the third quarter as film results far outpaced expectations, delivering the highest quarterly box office since the pandemic, which climbed to within 4% of 3Q19″ for the three months ended in September.
“Propelled by one breakout hit after the next as a steadier cadence of compelling titles were released into theaters, the third quarter’s results clearly underscore that moviegoing begets moviegoing and further illustrate the heightened level of impact a theatrical release provides all categories of content,” he said, commending studio partners.
Gamble noted that Cinemark’s Latin America theaters continued to maintain the most significant market share gains compared with pre-pandemic results of all major exhibitors.
The chain overall reported record-high third-quarter total revenue of $922 million, up 5% year-over-year and a 12% increase versus Q3 of 2019. Net income of $189 million was a major jump from $91.2 million the year before. Cinemark hit all-time-high food and beverage per caps of $7.97 in the U.S. and $6.08 worldwide.
At Marcus, Q3 revenue of $143.8 million jumped 13.6% from the year earlier. Division operating income of $21.8 million surged 91%. Revenue, operating income and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) all set records. Deadpool & Wolverine, Despicable Me 4, Twisters, Inside Out 2 and Beetlejuice Beetlejuice were the chain’s highest-performing films.
“While the WGA and SAG-AFTRA strikes impacted results for the first half of the year, we are pleased that the lingering effects seem to be further in the rearview mirror as demonstrated by the significant improvements in our third quarter fiscal 2024 results,” said the exhib’s President Mark A. Gramz. He’s looking forward to coin from Gladiator II, Wicked, Moana 2, The Lord of The Rings: The War of the Rohirrim, Mufasa: The Lion King and Sonic the Hedgehog 3.
Marcus, whose business is split between theaters and hotels, also saw a jump in the latter on strong room rates during the Republican National Convention in Milwaukee.