Cinemark Holdings reported third-quarter results above analyst expectations, citing strong attendance during the summer movie season. Revenue reached $1.06 billion, up 23.5% from $857.5 million a year earlier and ahead of the $1 billion estimate. Adjusted earnings were $1.04 per share, compared with the consensus estimate of $0.89.
The theater chain welcomed 63.7 million patrons, up from 54.2 million in the same quarter last year. Concession revenue per patron reached a third-quarter record of $6.50. Adjusted EBITDA increased to $268 million from $178 million, while its margin expanded by 4.6 percentage points to 25.3%.
Net income rose to $123 million, or $1.04 per diluted share, from $49.5 million, or $0.40 per share, in the prior-year quarter. Cinemark also reported that box office revenue from premium large-format screens, including XD, IMAX and ScreenX, increased 50% year over year, while motion-seat revenue rose 62%.
The company generated $136 million in operating cash flow and $66 million in free cash flow during the quarter, ending the period with $556 million in cash. It spent $70 million on capital expenditures for theater enhancements and expects full-year investment of about $250 million. Cinemark shares rose 2.5% following the results.
CEO Sean Gamble said the company converted momentum from summer releases into earnings growth, with worldwide revenue and adjusted EBITDA reaching third-quarter highs.
Sources: Investing.com News.