Texas-based exhibitor Cinemark reported higher than expected revenues for the third quarter, coming in at $650M for the July to September period. This was $96M lower than the $744M it earned during the second quarter but $215M higher than the $435M it earned during the third quarter of 2021. Cinemark shares (NYSE: CNK) rose sharply on the news since most analysts had expected lower grosses due to the underwhelming slate of new studio releases during the July to September period.
Cinemark CEO Sean Gamble expressed optimism about the exhibition sector, saying, “Compared to other out-of-home options consumers have to choose from, going to the movies remains a very affordable form of local entertainment.”
He further explained that on a film-by-film basis, box office grosses are comparable to movies released prior to the pandemic, but that the availability of new releases is the “biggest near-term challenge our industry continues to face.” He expects some relief from this important problem to come as streamers make their high-profile new movies available to exhibitors for initial theatrical runs.