Cinemark’s Q4 Profit Tumbles 52 Percent
PLANO (AP) - Movie theater chain Cinemark Holdings Inc.’s profit dropped 52 percent in the fourth quarter, as a loss on marketable securities and higher costs offset higher revenue at the concession stand.
Its earnings were below Wall Street expectations, while revenue topped estimates. Its shares fell more than 3 percent in early premarket trading Wednesday.
Texas-based Cinemark reported net income of $18.3 million, or 16 cents per share, for the three months ended Dec. 31. That’s down from a year earlier, when it earned $38 million, or 33 cents per share.
This missed the 19 cents per share that analysts surveyed by FactSet predicted.
The current quarter included a loss on marketable securities that reduced earnings by about 7 cents per share. The prior-year period also benefited from a $12.3 million gain on an asset sale.
Total cost of operations climbed to $474.4 million from $457.3 million.
Revenue increased 2 percent to $535.9 million from $524.9 million partly because it made more money from concessions like popcorn and soda. Admissions revenue dipped 1.4 percent to $336.9 million even as attendance rose 2.3 percent.
Analysts expected lower revenue of $533 million.
Cinemark’s stock declined 73 cents, or 3.4 percent, to $20.63 in premarket trading.
For the year, Cinemark’s earnings dropped 11 percent to $130.6 million, or $1.14 per share, from $146.1 million, or $1.29 per share, in the prior year. Annual revenue rose 7 percent to $2.28 billion from $2.14 billion.
Cinemark said that it expects to open 11 new theaters and 117 screens this year. The Plano, Texas company ran 456 theatres with 5,152 screens in 39 U.S. states, Brazil, Mexico and 11 other Latin American countries at the quarter’s end.
(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)
Also Check Out: