Cinemark posted narrower losses in the second quarter as CEO Mark Zoradi hailed the “phenomenon” of the movie business righting itself after the catastrophe of Covid-19.
The company exceeded Wall Street analysts’ revenue estimates in the quarter, which ended June 30, though losses were a bit wider than expected. Losses were $1.19 per share, compared with $1.45 in the year-ago period. Revenue of $294.7 million, up from just $9 million in the 2020 quarter, when theaters were shuttered in much of the world.
“I’m pleased to report that the second quarter recovery of our industry and business progressed at a faster rate than we expected,” Zoradi said in the company’s earnings release. “For Cinemark, the second quarter improved so materially that we were able to substantially reduce our net loss during the quarter and our domestic operations delivered positive adjusted EBITDA for the first time since our theaters were forced to temporarily shut down last year.”
The recovery of theaters, which has been an uneven process and is still under question in many corners of the media business, is a certainty as Zoradi sees it. “We remain confident in the global resurgence of theatrical exhibition as Covid-19 is contained,” he said. “We have already witnessed this phenomenon in various parts of the world and we have now experienced it firsthand with North America’s second quarter box office results.”
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Zoradi recently announced he will pass the CEO baton to COO and CFO Sean Gamble at the end of 2021, becoming chairman of the No. 3 U.S. exhibitor.
As of the end of the quarter, Cinemark said all 323 of its domestic theaters were back up and running, while 152 of its 198 international sites had reopened. Zoradi said the recovery from Covid in Latin America is lagging that of the U.S. by two to three months.
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