Movie theater owner Cinemark reported mixed fourth-quarter results, missing Wall Street earnings forecasts but posting better-than-expected revenue.
Earnings of 33 cents a share on a diluted basis represented an improvement from the year-ago period, which saw a loss of 15 cents a share. Analysts’ consensus outlook was for earnings of 41 cents.
Revenue increased 28% from a year ago to $814.3 million, well ahead of analysts’ expectations for $797.7 million.
The quarter saw particularly strong box office for family movies, including Moana 2, Wicked, Mufasa and Sonic 3. Despite the solid results to end the year, lingering impact from the dual strikes of 2023 and secular declines in theatrical moviegoing kept the industry’s annual revenue of $8.8 billion well short of pre-pandemic levels.
In a positive sign of recovery from Covid, however, Cinemark said it was restoring its shareholder dividend. The perk offered by many public companies as a reward for investors was widely abandoned early in the pandemic amid the scramble to conserve their cash reserves. Compared with many rival exhibitors, Cinemark has maintained a strong balance sheet with minimal debt. The Plano, TX-based company also does business in many states where theaters managed to remain open in 2020.
“Based on the strength of our company and our positive future outlook, we are thrilled to reinstate our annual cash dividend at $0.32 per share, which marks another major milestone in our recovery from the pandemic,” CEO Sean Gamble said in the official earnings release.
The first quarterly dividend will be payable on March 19 to shareholders of record on March 5.
For the full year, Cinemark pointed to its resilience in the face of the dual Hollywood strikes of 2023, which constricted the flow of major movie releases for a good portion of 2024. Revenue dipped a fraction of a percentage point compared with 2023, settling at $3.05 billion, with admissions revenue falling 2% to $1.5 billion and attendance dipping 4% million to 201.1 million ticket buyers.
