Cinemark Holdings (CNK) has reported its earnings and it was a dandy of a quarter. The company’s performance trounced our expectations on the top and bottom line. In this column, we discuss the company’s performance as well as our expectations for the future.
Revenue and ticket prices
The company had a strong fourth quarter. Total revenues for the three months ended December 31, 2017 were $750.0 million compared to $700.9 million for the three months ended December 31, 2016. This beat our expectations by $20 million. For the three months ended December 31, 2017, admissions revenues increased 4.5% to $443.5 million and concession revenues increased 10.1% to $261.2 million. Average ticket price was $6.72 and concession revenues per patron was $3.96 for the three months ended December 31, 2017. These increases were impressive, especially considering the recent trends in moviegoing:
Source: The Numbers
Income metrics
Considering expenses were well managed, the increase in revenues helped drive strong earnings performance. Net income attributable to Cinemark Holdings, Inc. for the three months ended December 31, 2017 was $95.1 million compared to $77.0 million for the three months ended December 31, 2016. Net income attributable to Cinemark Holdings, Inc. for the three months ended December 31, 2017 reflects the impact of new tax reform legislation that went into effect during December 2017. Diluted earnings per share for the three months ended December 31, 2017 was $0.82 compared to $0.66 for the three months ended December 31, 2016.
Adjusted EBITDA for the three months ended December 31, 2017 increased 11.5% to $187.5 million compared to $168.2 million for the three months ended December 31, 2016.
2017 performance
Cinemark Holdings, Inc.’s total revenues for the year ended December 31, 2017 increased 2.5% to $2,991.6 million from $2,918.8 million for the year ended December 31, 2016. For the year ended December 31, 2017, admissions revenues were $1,795.0 million and concession revenues increased 4.9% to $1,038.8 million. Average ticket price was $6.48 and concession revenues per patron was $3.75 for the year ended December 31, 2017.
