Cinemark Holdings Inc. (CNK) on Thursday announced its financial results for the third quarter. The Plano, Texas-based movie theater operator posted narrower-than-expected loss, but its revenue fell short of expectations, as Covid-19 pandemic severely affected its business during the quarter.
The company posted a net loss of $147.6 million, or $1.25 per share for the three-month period ended September 30, as compared to earnings of $31.4 million, or 27 cents per share. Analysts on average were looking for a loss of $1.35 per share.
Revenue for the quarter came in at $35.5 million, representing a sharp decline of 95.6 percent from the same period last year, and missed consensus forecast of $87.0 million.
Cinemark said revenue from admissions plummeted 96.7 percent to $14.9 million, falling short of $25.6 million estimated by analysts, while concession revenue dived 96.9 percent to $9.1 million, below analysts’ average estimate of $15.8 million.
Nearly 90 percent of the company’s local theaters were operational as of Sept. 30, though the operating hours were limited.
Speaking on the quarterly performance, CEO Mark Zoradi said Cinemark is now burning less cash as compared to the previous months when most of its theaters were closed. He said the company look forward to welcoming moviegoers as things return to normal.
Cinemark (CNK) is currently trading around $9.02 after rising more than 5 percent in the mid-day trading Thursday. CNK shares declined sharply to about $6 earlier in March following the Covid-19 breakout. The stock has been struggling to recover its lost value since then.
Overall, CNK share price has plummeted more than 70 percent on year-to-date basis, showing the devastating effects of the pandemic on its operations. The 52-week range of the stock is $5.71-$36.96. The company’s market cap is approx. $1.065 billion.