Cinemark Reports 95% Quarterly Revenue Drop as Pandemic Continues to Ravage Movie Theaters

Cinemark Theatres Nov. 5 reported a third-quarter (ended Sept. 30) loss of $148 million, compared with income of $31.9 million during the previous-year period. The nation’s third-largest exhibitor saw revenue plummet more than 95% to $35.4 million, from $821.8 million a year ago, due to shutdowns and limited seating brought on by the ongoing coronavirus pandemic.

Through nine months of the fiscal year, Cinemark revenue is down 76.5% to $588 million, from $2.5 billion a year ago. Net loss tops $378 million, compared with a profit of $167 million.

Through the quarter, the company had 252 domestic and 15 international theaters open to limited hours, showing library content and some new releases.

“As the COVID-19 pandemic continues to have an unprecedented impact on the theatrical exhibition industry, our top near-term priorities remain stringently managing liquidity, driving productivity and reigniting moviegoing,” CEO Mark Zoradi said in a statement. “With nearly 90% of our domestic theaters now operating, we have been encouraged by our results to-date, wherein we have been burning less cash open than when we were shut down.”

Zoradi said the chain has been able to burn less cash through “innovative new ways” of operating theaters and maximizing revenue, such as the “Private Watch Party” concept launched in July.

“We look forward to a more normalized pipeline of new film content,” he said.

Cinemark operates 345 theaters nationwide, in addition to 86 theaters in Brazil, 36 in Chile, and 22 in Argentina. The company’s aggregate screen count was 5,974 and it had commitments to open two new theaters and 16 screens during the remainder of 2020, and 20 new theaters and 205 screens in 2021.

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