Cinemark Swings to Quarterly Loss Amid Pandemic, But Is 'Highly Confident' in Rebound

'It is almost unfathomable that one year ago, we were reporting Cinemark’s fifth consecutive year of record results,' says CEO Mark Zoradi as the exhibition giant reports its fourth-quarter results.

2/26/2021 2:58:00 PM

Cinemark CEO Zoradi: 'It is almost unfathomable that one year ago, we were reporting Cinemark’s fifth consecutive year of record results. ... We remain highly confident in the rebound of our industry once the virus is more contained...' Details:

'It is almost unfathomable that one year ago, we were reporting Cinemark’s fifth consecutive year of record results,' says CEO Mark Zoradi as the exhibition giant reports its fourth-quarter results.

Cinemark CEO Mark Zoradi"It is almost unfathomable that one year ago, we were reporting Cinemark’s fifth consecutive year of record results," says CEO Mark Zoradi as the exhibition giant reports its fourth-quarter results.Cinema giant Cinemark Holdings swung to a loss for the fourth quarter due to the coronavirus pandemic, but expressed confidence in a rebound in movie-going once the virus is more contained.

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"The company’s financial results continue to be significantly impacted by the COVID-19 pandemic, as the company’s theaters were closed for an extended period of time beginning in March 2020," Cinemark said."The company began reopening domestic theaters in June 2020 and international theaters in August 2020, following enhanced health and safety protocols."

As of Dec. 31, it had 217 domestic and 129 international venues open"to limited hours, showing library content and some new releases with some limitations on capacities."The company, led by CEO Mark Zoradi, posted a quarterly loss of $239.3 million, or $2.03 per share, compared with a profit of $26.3 million in the year-ago period, or 22 cents a share. Adjusted results before interest, taxes, depreciation and amortization, another profitability metric, swung to a loss of $97.5 million. headtopics.com

Revenue dropped from $788.8 million in the year-ago period to just $98.2 million in the fourth quarter.Cinemark, the third-largest circuit in the U.S. behind AMC Theatres and Cineworld's Regal, said that for its latest quarter attendance fell to 6.6 million patrons, admissions revenue reached $49.1 million, and concession revenue dropped to $31.5 million.

Said Zoradi:"It is almost unfathomable that one year ago, we were reporting Cinemark’s fifth consecutive year of record results with the North American industry touting the second-highest grossing box office of all-time. While COVID-19 has caused significant distress to our industry and our company, Cinemark has maintained discipline and consistency, while demonstrating relentless perseverance and agility."

He added:"We remain highly confident in the rebound of our industry once the virus is more contained, as evidenced by recent box office results in China, Japan and Australia. Cinemark was well-positioned heading into the crisis, and we have adapted and evolved the way we operate to navigate the current environment, and to ensure we remain successful and further solidify our leadership position as theatrical moviegoing resurges."

In December, the CEO had insisted that Cinemark’s priority was rebuilding its balance sheet, like it was for peers."I don't want to say M&A isn't a potential in the future, but it's not something we're actively doing, as we speak, right now," Zoradi said back then. headtopics.com

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The future of the theatrical window has also been a key focus for exhibitors. AMC Theatres and Universal first struck a deal, in which films were given a guaranteed 17-day window, or three weekends, before they could also be made available through premium VOD. Cinemark the unveiled a deal with Universal for a 31-day window, covering five weekends, for films that open to $50 million or more and/or key franchise titles.

Read more: Hollywood Reporter »

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