August 4, 2020
When your movie theaters generate just $37,000 in revenue over 90 days, the bottom line turns crimson. That’s the fiscal scenario exhibitor Cinemark disclosed Aug. 4, reporting a second-quarter loss of $170 million on revenue of $8.9 million. How bad was the quarter? Concession revenue ($124,000) topped ticket sales by 235%.
During the previous-year period, Cinemark generated nearly $102 million in net income on revenue of $958 million. The dreary quarter underscored ongoing challenges exhibitors face with business models shuttered due to the coronavirus pandemic.
Built into the fiscal loss was a restructuring charge of $19.5 million. The charge was a result of a permanent reduction in headcount and permanent closure of certain underperforming theaters.
Headquartered in Plano, Texas, Cinemark operates 554 theaters and 6,132 screens in the U.S. and Latin America. CEO Mark Zoradi claims consumers are champing at the bit to return to movie theaters, citing an internal survey that that found 97% of respondents had “high satisfaction” how the company would protect their health and safety.
“We greatly look forward to initiating the rollout of our theaters, beginning Aug. 21 as we welcome our employees and guests back to our theaters for great cinematic storytelling,” Zoradi said in a statement.