Profits fell and attendance dipped at Cinemark Holdings during the exhibitor’s third quarter.
The country’s third-largest theater circuit was a victim of an anemic slate of summer blockbusters. Overall, the summer box office was down 15% from the previous year, and Cinemark’s rivals AMC and Regal have suffered difficult financial quarters as audiences opted to steer clear of the multiplexes.
Cinemark was also hurt because it has extensive holdings in South America, where last summer’s World Cup took a bite out of ticket sales.
Cinemark’s revenues for the three months ending in September fell nearly 15% to $646.9 million, compared to $757.6 million for the year-ago period. Net income was essentially cut in half, dropping from $80 million to $38.1 million, while earnings per share fell from 69 cents to 33 cents.
The results missed Wall Street’s projections of 35 cents per share in earnings and revenue of $656 million.
The culprit was plunging admissions, as revenues from ticket sales dropped 16% to $402.9 million. Fewer people through the door limited popcorn and soda sales. Concession revenue fell 12. 9% to $211.1 million. Average ticket prices for the period increased 2.9% to $6.09.
Adjusted EBITDA for the three months topped out at $141.7 million, a 25% fall from $190.2 million the previous year.
Cinemark’s screen count stands at 5,629, and the company has signed deals to open five new theaters and 51 screens during the remainder of 2014. There are pacts for an additional 22 theaters, comprising 187 screens, to be completed in the coming years.
Cinemark closed Wednesday up .49% at $34.57.