Loading...
01/10 16:37
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call indicates strong financial performance with record high concession per capita and strategic pricing actions. Despite a negative free cash flow, the company expects improvement in EBITDA margins and has a positive outlook on future film releases. The Q&A reveals optimism about market share gains and strategic pricing power, though inflationary pressures and unclear guidance on cash flow benefits pose risks. Overall, the company's strategic actions, such as share repurchase and dividend payments, reflect confidence, suggesting a positive stock price movement.
Global Attendance 57.9 million patrons, up 16% year-over-year. Growth attributed to a compelling film slate and successful execution of strategic initiatives.
Worldwide Revenue $940.5 million, increased 28% year-over-year. Driven by higher attendance, improved monetization, and productivity advancements.
Adjusted EBITDA $232.2 million, up 63% year-over-year. Margin expanded by 530 basis points to 24.7%, reflecting increased operating leverage and productivity advancements.
Domestic Attendance 36.9 million guests, sustained strong market share gains compared to pre-pandemic levels. Benefited from family films like Minecraft movie, Lilo & Stitch, and How to Train Your Dragon.
Domestic Admissions Revenue $383.4 million, with an average ticket price of $10.39, up 5% year-over-year. Growth driven by strategic pricing initiatives and favorable format and ticket type mix.
Domestic Concession Revenue $307.6 million, up 33% year-over-year. Achieved highest quarterly concession revenue ever. Concession per cap increased 5% to $8.34 due to strategic pricing actions and favorable product mix.
Other Revenue (Domestic) $68.3 million, grew 28% year-over-year. Growth attributed to higher attendance levels, increased promotional income, transaction fees, and gaming revenue.
Domestic Segment Revenue $759.3 million, highest quarterly revenue ever, up 33% year-over-year. Adjusted EBITDA grew 73% to $188.1 million, with a margin of 24.8% (580 basis point expansion).
International Attendance 21 million guests, in line with the previous year. Attendance benefited from family titles, offsetting challenging comparisons from prior year's success of Inside Out 2.
International Revenue $181.2 million, up 12% year-over-year. Adjusted EBITDA increased 32% to $44.1 million, with a margin of 24.3% (380 basis point expansion).
Film Rental and Advertising Expense 58% of admissions revenue, up 220 basis points year-over-year. Increase due to high-grossing films and higher marketing spend.
Concession Costs 19.4% of concession revenue, up 10 basis points year-over-year. Driven by higher mix of merchandise sales and inflationary pressures, offset by strategic pricing actions and higher rebates.
Global Salaries and Wages $109.4 million, up 12% year-over-year. Increase due to higher labor hours, expanded operating hours, and wage inflation, partially offset by productivity initiatives.
Facility Lease Expense $82.9 million, up 2% year-over-year. Increase due to higher percentage rent and inflationary increases, partially offset by foreign exchange rate favorability.
Utilities and Other Expense $124.7 million, up 19% year-over-year. Increase driven by higher attendance, elevated repairs and maintenance, and higher fixed costs.
G&A Expense $54.1 million, down 3% year-over-year. Decrease attributed to lower share-based compensation, favorable exchange rates, partially offset by wage inflation and higher professional fees.
Net Income $93.5 million, resulting in diluted earnings per share of $0.63. Reflects strong adjusted EBITDA performance and seasonal working capital tailwinds.
Minecraft movie success: Generated over $950 million in global box office proceeds, setting a record-breaking result.
New film releases: Several new films like How to Train Your Dragon live-action remake, Marvel's Thunderbolts, and Lilo & Stitch exceeded expectations, with Lilo & Stitch surpassing $1 billion globally.
Upcoming films: Exciting releases planned for Q3 and Q4 2025, including Tron: Ares, Mortal Kombat II, Zootopia 2, and Avatar: Fire and Ash.
North American box office growth: Q2 2025 box office reached $2.7 billion, up 35% year-over-year, flipping year-to-date tracking to a 14% gain versus 2024.
International market share: Strong market share gains in Latin America, with over 100 basis points of growth compared to Q2 2019.
Revenue growth: Global revenue increased 28% year-over-year to $941 million in Q2 2025.
Adjusted EBITDA: Increased 63% year-over-year to $232 million, with a margin expansion to 24.7%.
Concession revenue: Achieved highest quarterly concession revenue ever at $307.6 million, with per cap exceeding $8 for the first time.
Premium offerings: Investments in premium large-format auditoriums, D-BOX motion seats, and ScreenX experiences contributed to record revenues.
Loyalty programs: Cinemark Rewards and Movie Club accounted for over 55% and 30% of domestic box office proceeds, respectively, with Movie Club membership up 12% year-over-year.
Technology upgrades: Continued investment in Barco laser projectors and reclining seats, with 70% of domestic footprint now featuring recliners.
Marketing reach: Enhanced marketing efforts reached over 32 million addressable consumers globally, driving ticket sales and engagement.
Market Conditions: The company faces risks from the typical tapering of box office revenues during August and September as summer vacations wind down and school resumes. This seasonal trend could impact revenue generation.
Regulatory Hurdles: No explicit mention of regulatory hurdles was made in the transcript.
Supply Chain Disruptions: No explicit mention of supply chain disruptions was made in the transcript.
Economic Uncertainties: Inflationary pressures are impacting concession costs and wages, which could affect profitability. Additionally, foreign exchange rate fluctuations were noted as a factor influencing costs.
Strategic Execution Risks: The company is heavily reliant on a strong film slate to drive attendance and revenue. Any delays or underperformance in film releases could adversely impact financial results. Additionally, the company is investing heavily in technology and theater upgrades, which could pose financial risks if returns on these investments do not meet expectations.
Future Film Slate: The company highlighted a strong lineup of films for the remainder of 2025 and into 2026, including major franchises like Avengers, Spider-Man, Minions, Toy Story, Shrek, and Mario Brothers, as well as original concepts from renowned filmmakers. This robust pipeline is expected to sustain consumer enthusiasm for theatrical experiences.
Revenue and Attendance Growth: Cinemark expects to continue benefiting from a favorable content mix and strategic pricing initiatives, which have already driven record-high concession revenues and increased attendance. The company anticipates further growth in attendance and revenue as the film slate strengthens.
Capital Expenditures: The company plans to invest approximately $225 million in capital expenditures for 2025, focusing on maintaining and enhancing its high-quality circuit, including expanding reclining seats and upgrading projection technology.
Premium Offerings Expansion: Cinemark is expanding its premium large-format auditoriums and D-BOX motion seats, with plans to introduce 80 additional D-BOX auditoriums and 20 more ScreenX experiences by the end of 2026. This is expected to drive higher revenue and enhance customer experiences.
Loyalty Programs: The company aims to grow its loyalty programs, which already account for a significant portion of domestic box office proceeds. The Movie Club subscription program has grown by 12% year-over-year and is expected to continue driving increased moviegoing frequency and higher food and beverage consumption.
Debt Management and Financial Position: Cinemark plans to settle $460 million in convertible notes in cash by August 15, 2025, and has taken steps to reduce annual cash interest expenses by $24 million. The company maintains a net leverage ratio within its target range of 2 to 3x, providing financial flexibility for future investments.
Quarterly Dividend: In June, Cinemark paid its second quarterly dividend since the pandemic. The company aims to return a greater share of its free cash flow to shareholders over time, provided its net leverage ratio remains within the target range of 2 to 3x.
Share Repurchase: Cinemark repurchased 7.93 million shares in the first quarter to mitigate potential dilution from the settlement of warrants. Actively managing dilution remains a key priority for the company.
The earnings call summary and Q&A section provide a positive sentiment overall. The company projects strong future film releases, revenue growth, and premium offerings expansion, which are expected to enhance customer experiences and drive attendance. Despite some headwinds, the management's optimistic guidance, strategic pricing, and loyalty program growth are likely to positively impact the stock. The company's sound financial health and strategic initiatives to expand market share further support a positive outlook. Given the market cap, the stock is likely to see a positive movement of 2% to 8% over the next two weeks.
The earnings call indicates strong financial performance with record high concession per capita and strategic pricing actions. Despite a negative free cash flow, the company expects improvement in EBITDA margins and has a positive outlook on future film releases. The Q&A reveals optimism about market share gains and strategic pricing power, though inflationary pressures and unclear guidance on cash flow benefits pose risks. Overall, the company's strategic actions, such as share repurchase and dividend payments, reflect confidence, suggesting a positive stock price movement.
The earnings call presents a mixed picture: EPS missed expectations, but revenue exceeded them with records in moviegoing momentum. Despite a net loss and negative free cash flow, strategic initiatives improved EBITDA and margins. Share repurchases and strong cash balance are positives. The Q&A reveals uncertainties in market share and film windowing, with management providing unclear responses. The market cap suggests moderate reaction, leading to a neutral prediction.
The earnings call presents a mixed picture: strong box office performance and strategic initiatives led to increased revenue and EBITDA, but EPS missed expectations, and a net loss was reported. Share repurchases and liquidity are positives, but free cash flow is negative, and expenses are rising. The Q&A reveals cautious optimism but lacks clarity on margins and impacts of flexible windows. Given the market cap, the overall sentiment is neutral, with limited strong catalysts to drive significant short-term stock price movement.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
