Cinemark reported a narrowed fourth-quarter loss of $18 million, compared to a year-earlier loss of $99.3 million, as revenue rose 6.5 percent to $638.9 million, the exhibition giant reported Friday.
Quarterly adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), another profitability metric, grew to $79.6 million from $73.5 million a year ago. On the earnings call, CEO Sean Gamble noted that the the total 2023 adjusted EBITDA recovered to within 20 percent of 2019 levels, with 25 percent less attendance.
For the three months to Dec. 31, admissions revenue increased 5.8 percent to $322.4 million, while concession revenue jumped 7.7 percent to $243 million, “driven by a 3.6 percent increase in attendance to 40.6 million patrons,” Cinemark said. Its worldwide average ticket price was $7.94, with concession revenue per patron coming in at $5.99. Domestically, the average ticket price was up 2 percent year-over-year, reaching an all-time high of $10.21 in the quarter, which management said was driven primarily by the elevated ticket pricing and box office success of Taylor Swift: The Eras tour Concert Film, as well as strategic pricing initiatives.
In the U.S., Cinemark hosted 40.6 million patrons in the fourth quarter, compared to a year-ago figure of 39.2 million.
In 2023, film volume grew to 110 wide releases, reaching 85 percent of pre-pandemic levels, up from 65 percent in 2020, the company said. Film volume in 2024 is expected to be about 95 titles.
“While six months of work stoppage associated with the Hollywood strikes will likely cause a dip in wide releases to approximately 95 titles into 2024 for an estimated 75 percent of pre-pandemic levels, we expect film volume in 2025 will quickly spring back to the recovery glide path it’s been on over the past two years, notching another step closer to pre-pandemic levels, based on current production activity, and expressed plans at the major studios,” Gamble said on the earnings call.
He noted that premise is also supported by Amazon’s and Apple plans to continue growing their theatrical film slates, as well as the trends in non-traditional content growth, such as faith-based content and concert films.
Said Gamble: “2023 represented another year of meaningful progress for our industry and our company. Key indicators pertaining to the fundamental drivers of our industry — specifically consumer behavior and product flow — were further reinforced, and our team’s outstanding operational execution and financial discipline delivered outsized results.”
He added: “We believe our strong 2023 results provide a clear sign that our many ongoing strategic growth and productivity initiatives are driving significant impact. As we look ahead, we remain highly optimistic about the future of our company and our ability to fully capitalize on our industry’s continued recovery.”