Thanks to lower costs compared to its competitors, Cinemark was able to ride the early summer box office surge to a strong second quarter, with $744.1 million in revenue reported, beating Wall Street projections of approximately $733 million.
That revenue total is up from the $460.5 million grossed in Q1 2022, with $381.9 million coming from ticket sales and $286 million coming from concessions. After reporting a net loss of $72.5 million last quarter, Cinemark reported a net loss of $73.4 million, which equates to diluted loss per share of 61 cents. Last quarter, Cinemark reported diluted loss per share of 62 cents.
“Continued improvement in consumer sentiment, as well as a more consistent release cadence of compelling new films with broad consumer appeal and an exclusive theatrical window, yielded the highest quarterly box office since the inception of COVID-19,” said Sean Gamble, Cinemark’s president and CEO, in a statement.
While Imax and AMC had significant expenses related to the COVID-19 pandemic and other acquisitions, Cinemark kept its costs down to take advantage of a $2.32 billion quarter for the domestic box office, with “Top Gun: Maverick,” “Jurassic World: Dominion” and “Doctor Strange in the Multiverse of Madness” serving as the top three films. “Maverick” and “Dominion” in particular boosted June box office totals to the highest that Cinemark has reported since the start of the COVID-19 pandemic.
Q3 will likely see further Cinemark loss as August and September are not expected to yield a new release with an opening weekend above $30 million. But Q4 should see a holiday rebound for exhibitors with films like “Halloween Ends,” “Strange World,” “Shazam: Fury of the Gods” and especially “Black Panther: Wakanda Forever” and “Avatar: The Way of Water” driving weekend grosses back up.
But Gamble presented an optimistic look at the future: “As a result of our sustained investments over the years, the operating enhancements we’ve made throughout the pandemic, and the further advancements we are achieving through our strategic initiatives, we believe Cinemark remains exceptionally well-positioned to navigate the ongoing recovery of our industry and fully capitalize on its continued resurgence.”
