CNK - Earnings call transcript Q3 2024 | Cinemark Holdings, Inc.

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Operator

Greetings and welcome to Cinemark Holdings Inc.'s Third Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Chanda Brashears, Senior Vice President, Investor Relations. Thank you.

You may begin.

Chanda Brashears

Good morning, everyone. and welcome Release Cinemark Sean Conference and Executive to Quarter Inc.'s Gamble, like Financial Chief Earnings Chief XXXX Call Officer; would you Holdings, to Third President Officer. I Thomas, Melissa hosted by

Before that or we call be comments everyone conference statements forward-looking this begin, statements. like on remind would may I to made

matters and statements include, that differ materially may but to objectives, financial of directly The found statements A other in or and financial company's results the may that, differ are like plans, to, contained may company's risks to company's filed variety include the results Gamble. can turn Forward-looking financial most is from due Sean most of non-GAAP would or factors. recently website expectations these now involve company's at the release, most financial actual These forward-looking factors earnings call recently intentions. reconciliation projections concerning to cause measures Information comparable uncertainties. to not to over GAAP the company's the necessarily certain of be measures the materially could XX-Q limited a call measures. on filed I the non-GAAP today's on ir.cinemark.com. With XX-K. Also projections

Sean Gamble

the which considering and million Romulus, which million Alien: Us XXXX's XX% sci-fi that as and than Covenant. high film well XX% office $XXX was the was theatrical more up anticipation word-of-mouth quarter quarter full high for billion industry third a office and and good animated set enthusiasm you, box fantasy in which box well was history was was suspense shared X% Deadpool box discuss billion million office outpaced year's there office this film the theaters, to thriller underscore more categories than $XXX Place: $X.X and $X.X is in box that R-rated billion XQ, of $XXX Barbenheimer over more Twisters phenomenon. Halloween DMX, of Inside to momentum up larger-than-life become our domestic after from the XQ released Wolverine, run. And the XX% generating last clearly worldwide One, one further into this the row reached results appreciate results cadence above experiences $XXX nearly films all more Thank also Beetlejuice as Despicable as morning then which lifted ride highest-grossing 'XX. Propelled the the These far remarkable the American year. North & that display full than by in from and morning, adventure quarter's heightened of for also Quiet consumer movie-going, grossing Beetlejuice, a the quarter, year-over-year, grew drove you X, content. Take, Me to Out both in the theatrical It breakout and become its pandemic Chanda, over bar by during domestically Ends history, for lengthy highest million thrill of drama expectations $X.X of to illustrate with A alone. Strong hit X. Enthusiastic, nearly X as example, third of once represented movie-going third astounding an up to with compelling Strong, next, also provides domestically as results. begets a highest-grossing impact for domestic third million screens adventure and We were everyone. Deadpool release X% joining on since again within which level up and must-see-on-the-big-screen slashed romantic as sustained us quarter up climbed captured theatrical results of worldwide, comedic steadier quarter was the $XXX results with magnificent worldwide the Day than XXXX elevated in of playthrough Alien:

thriller Longlegs all million box studio boosted $XX for became response Neon. positive to of time Additionally, nearly the crime independent domestic highest-grossing domestic office, release of which

continue increased events, conversation, stimulates recallability demonstrate all Third and results bigger how the a its significantly remember their quarter's amplifies people of theatrical to and staying that about strengthening value studios, that for which to film come. deliver of audiences. These like release many cultural talking content, predecessors, longevity, power, are relevance films, years enhanced be and and filmmakers, the and will to theatrical have creates

work studio and delivered as quarter's again and team captivated releasing helping like for more. To lineup then we strive the a the hundreds a products, certainly Just creates Universe that unmatched benefits will in else. Driven and them release keeps delights Me through such $XX on in the and as industry to recent mix like to service a domestic Out almost are the how anywhere and unforgettable content across unparalleled for of third and nearly North comparable industry X were box clearly leave moments. At found installment our we generated that compelling growth there's screen. million impact for theaters commend entertainment that office XXX over we was end, August close outstanding proceeds stories as like generate can't more in moviegoing the to office like American Cinemark, have to office audiences, Twisters strategic stimulate and and that with deliver be box I'd once our circuit, rides years tactical to this impactful highest than internationally, see and grossing of for of grossed experience back cinematic the deep level and is drive film X of Alien and every all coming screens, generates are Cinematic quarter's we to their an imprint Despicable for benchmark year and ago. Furthermore, These setting also more a years heights hit been XX resonated exceptional lasting the massive Marvel increased XXXX, years that the all a well industry producing theatrical an into to franchises Beetlejuice now. And film consider box approximately via millions office which understand serve and the years thrilled connection third basis and of of original well that by moviegoers demand, with equally Out Cinemark of to the These through park American ago, many the theatrical our points admissions to Coraline, first decade we our Inside tremendous continues execution that examples years particularly we it spinoffs, theatrical guests financial by that quarter. meaningful consumer results year-over-year XX their moviegoers ago, content film experiencing games, outperformed ago, that team's grown from to how fact coupled our deliver and with to our proceeds Latin follow. I'd emotional of diligent basis deriving consistently our initiatives released program theaters the theatrical third every from memory-making delighting all Cinemark are strategically year Inside actions examples our stories, box sensational by results. Domestically, characters, XX than -- well quarter continued repertory XX commend big sequels, alone theme have we audiences U.S. XXX franchises quarter points. the surpassed time. Similarly, our exceeded partners September

growth set also combined were were of all new by box of comparably management. office another bottom We per results $XXX which domestic enhanced record cap revenue top-line of complemented robust concession worldwide time. line strong highest million, quarter our yielded expense and $X.XX, total operating our by These agility third disciplined that further industry-leading with achievements revenue

attendance million in despite our generated our year-over-year expanded XX% cash EBITDA the basis highest a worldwide EBITDA which third of free $XXX EBITDA to year, history adjusted XXX our nearly adjusted $XX During Furthermore, in to grew quarter, the points adjusted our and of company. XX% versus last we marginal flow. margin is million, quarter decline

of over to areas initiatives build deployment, of of range and we've advance previous sources audiences, our Cinemark on strategic team grow the none, including and focus, active of global X solid uniquely industry's established position resourceful to track byproduct solid As pandemic, outperformance, with past recovery continue of overall of from of wide pursuit decades, highlighted capital skilled second ongoing our a advantages. the record revenue, and that industry capabilities. These distinctive been consistent a navigation of careful highly new our the is years disciplined our and has with operating a that calls, foundational results, framework are to combined the optimize

of largest grew the that continue auditoriums during quarter, has in very our XX% that make as of revenue dive to our of our for our from versus these strategic XX% with financial solid our Melissa our will viewed the made strides benefit and asset refortifying large maintain highest premium assets array the D-BOX format of position generated and to that as For able in compelling which in XQ and the worth the cash motion our high-quality in financials nearly invest globally, we volume account seats over our to it's penetration sight, quality those years that large-format and seats generated example, company. we largest deeper in the strategic D-BOX been this enhance I'm a X ever, provide team quarterly the of past the we free second nearly circuit including continue 'XX, business. In rollout flow premium a quarterly our in of investments presentation leading highest moment. of the we long and exhibitor-branded on years a into have sound, domestically, great XD noting and world, to we time. We've profile revenue regard, pleased future, has highest yielded third sustain reclined and position investments markets, all

of awareness our and an of financial loyal XX communicate now with upcoming and participate on we deliver our loyal and over achieved club we measures levels service XX% from as paid million high Beyond million our to developed to a impressions derive sophisticated brightest spread our loyalty audiences, continuously consistently we also members. Furthermore, through of consistently that personalized individual has consumer field increased to base movie-going Over and assets highly members an and marketing focus extensive uptime, the is with capabilities can platform our events, developing, global projection addressable a approximately taken best close extent programs, protocols something through circuit omni-channel box operating our unique billions data-driven scale base strength, imagery earn our level guests improving we as that The well XX% we whom revenue, global year and XXX% establish years drive actively capabilities. From ratings marketing in office scale frequency. developed offers, to across of reach. addressable have reach digital, a and margin. training industry-leading to analytics that technology that and honing, movie feeder yield to domestic our from pricing subscription the and concentrated of satisfaction XX of quality volume, and have that and customers customer at an maximize our drive approximately social,

efficiently beyond efficient and as deliver also ongoing as us drive ability and we forward. One our to curation optimize tools with and enhancing our consistently well we will showtimes as provide to market grow and and purchase a array the we value is such the years pandemic of continue opportunity processes further new help actions then exceptional levels of food, pursuing beverage, we incremental run possible. Collectively, recovers capabilities an company incurred extend year's as with for advanced invested expect Our XXXX offerings that high-quality during in possess in growth compounded provide and capitalize as to are the of future the move creation volume labor outsized methodical ease, as opportunities enhanced of that well we and that We've of as strengthen continued us further utilization to appealing many area merchandise film on Hollywood. business advantages distinctive our strikes service it management. release the broad following production of as were the the selections by delays drive way last rebound the in today, to

into value inspirational can. And the and exhibition We unforgettable believe an long-term well are ever. Moreover, impact proven of ability for XXXX is are situated a way is slate. Much component years as years fully change X as about grow like Sonic a fourth like well about a release to quarter's for Melissa? remains storyline crisis past new will information strong with to to creation that XXXX within like enthusiasm Moana their on X, optimistic channel focused studio's global Despite models, release a further is turn the setting, and our be acutely is content have as as and has relevance, of our theatrical clearly to remain as thrive to the horizon, and Gladiator quarter and theatrical poised Cinemark audiences Wicked, that films its the releases they come. I now and highly awareness, varied an close the shareholders, for who over which on and health our financial consumer the resiliency carry we of continued of elevate persevere with what call important growth, only our to and that momentum Mufasa, experiments stable and in value strong again. II, the leaning for will to Melissa, up the theatrical industry we and this partners Hedgehog the shaping film been a through will more time our into share movie, adversity and delivering entertainment X a and moviegoing demonstrated recovery formula, experiences results. blockbuster

Melissa Thomas

office you the morning, office delivered quarter for were year-over-year today. record vitality EBITDA. across which reinforced the levels, in of And the We XX% we over worldwide momentum X% million further office third million adjusted footprint the team's strong unwavering to achieved for both quarter significantly surpassed of the everyone, our you, of dedication to box and their call box $XXX.X on and We during led with we third revenue Thank the momentum, Sean. the of pleased quarter, thank extremely global remarkable to and our results. XX ability over moviegoers with expectations quarter and XXXX. industry. This on revenue welcomed similar third adjusted highs fully box health We strength capitalize the Good million. Notably, and a expanded and joining third grew EBITDA, our the maintained levels. pre-pandemic increase through quarter together adjusted our basis compared XXXX. U.S., margin XX.X quarter EBITDA basis points share XXX third grew share gains guests, XX XX.X%. In points entertained year-over-year year-over-year of market we the with We to and significant flat million with our execution, $XXX.X

supported of the Our market from well well content which throughout limited the films, due particularly was were that mix audience also box by towards base. a skewed to our constraints was success strategic more heavily initiatives. office ongoing distributed horror share received by that quarter capacity It and impact and benefited family our

Day, in was Cinema tickets, a our primarily theatrical of which offered of last of year in concession the quarter celebrate cap new high movie National patrons to per and and driven premium $XXX.X generated increase The mix strategic year-over-year and initiatives, and X% $X.XX. QX in ticket $X concession ticket higher third During third average delivered of pricing of million in revenue and absence quarter, by we $XXX.X the format $X.XX. price tickets all-time a the achieved encourage million going. We occurred grew to average admissions price revenue

up by strategic cap quarter, increase higher sales, well in Our incidence XX% content in of adjusted rates million which benefited up yielding as concession and EBITDA, operations promotional million, delivered $XXX.X favorable per our adjusted a XX.X% $XXX.X year-over-year, mix the pricing both Altogether, of events EBITDA year-over-year, margin. of merchandise an higher X% was measures. Other revenue primarily $XX.X nearly from as driven was million and robust and revenue the domestic to due revenue.

Romulus our international as Beetlejuice in they and America third Turning did to resonate in did third Alien: Latin of in segment, hosted decline we our like quarter, Beetlejuice, U.S. during the from as patrons as the Twisters, not a XX.X million X% theaters XXXX quarter the well films

across However, the we market grew our share region.

adjusted $XX.X devaluation, concession $XX.X million impacted adjusted Our of these XX.X% $XX.X of $XXX.X in $XX.X and largely of the delivered delivered by In million other a total, in and international of million million international quarter. revenue, third strong million we revenue, in admissions inflation segment revenue EBITDA resulting particularly of dynamics. EBITDA negatively Argentina, with EBITDA, FX adjusted offsetting was margin. International revenue

of points and basis quarter footprint. Switching with inflationary our continue and and X% by concession third lower film political quarter. of Latin global overall local benefits due expense Our adeptly and wages rates, hours million, pressures driven than a year compared and an a admissions pricing were revenue points was results concession basis from the as as rental well our year-to-date economic strategic our decrease across to concentration XX.X% demonstrate candy. Global as $XXX.X offerings, navigate salaries our mix were compared the merchandise high-grossing films. Concession as expenses, percent XXXX the American in of favorable by due third team's to operating up complex to wage product higher quarter ability expansion margin the XX offset the landscape such costs of of labor productivity advertising with concession to titles XXX a offset up of same to year-over-year, initiative on period increased the and revenue, the and of higher categories, last mix as of more measures certain rebates, partially XX.X%,

points and As year-over-year, rent. of a $XX.X wages was due higher increase to year-over-year. Facility revenue, were million, basis percent largely percentage X% salaries XX down an total expense of lease

from expense the other reduction As and primarily partially was revenue, third by of total decreased inflation. attendance basis million, a and impacts, currency in $XXX XX offset expense XXXX, by X% foreign down quarter points. Utilities percent the lease driven facility

net higher and share-based of points. G&A of and earnings and diluted Cinemark revenue, million the due were fees. in increased tax and the previously of utilities offset professional the $XX.X million benefit, partial year-over-year allowances and quarter, total Net foreign in an release to $XXX.X primarily to per partially related third a we included a U.S. income recorded quarter, currency compensation, decreased As Inc. XXX dynamics. Globally, other by in inflation, Holdings was percent attributable wage increase of million to basis third the delivered benefits $X.XX. share valuation $XX.X impacts These incentive income

June we cash and generated Turning despite payments flow, during third capital cash film cash which strong box our sheet, to related office. With million million free of environment, that, as rental in box associated made on the issuance notes ended quarter, to flow cash third July we working benefited million to quarter stronger million. $XXX of as flow the $XXX of from the operating $XX the unsecured balance $XXX quarter the of the headwinds upsizing the with office well third with

our balance on elevated maturity. their anticipate of cash principal will intend convertible notes remain August amount to the leverage the as to upon We of near million $XXX we continue to XXXX cash hand in the term repay

reminder, call provisional excess focus our to sheet, have the position the with success, shareholders, feature. More allocation, we investing company balance and a near-term a have on long-term broadly to on for priorities. capital allocation As first the our capital a strengthening do not notes pillars returning X strategy: X to capital

XXXX, the unsecured $XXX it notes million issuance due $XXX unsecured to March relates successfully first our in of with XXXX. notes we million refinanced As due the pillar,

our office. debt ratio of We third within $X range in target Latin million box America. unanticipated remains expectations, the driven leverage remaining a outperformance and COVID-related concluded net X.Xx, also with which third of our repaid by quarter surpassed quarter of the the We our

full the track and a which for us Our further quarter, we second and the balance and of grow differentiator theater long-term are spend to in newbuilds, such a growth capital pillar, to pursuing a brings making company. strategic sheet year third investments flexibility high accretive million on asset confidence of secure our ROI-generating and for health This circuit, the success, M&A. In opportunities as the strategic our we to including is to million $XXX maintain competitive is capital allocation to our and financially enhance had long-term me circuit invest and affords key strengthening enhancements maintaining our fleet. accretive and $XX our high-quality expenditures, and

capital flow $XXX As in expenditures box to we normalized the continue to office cash and rebound, million million $XXX anticipate range.

pillar, capital as a part been and our our shareholders, capital returning consideration of for has historically to forward. to remains strategy excess Moving an us allocation third capital key allocation important look which we

significant our progress industry's our on process. and the positive currently our we near-term the allocation capital Given allocation budgeting made with rebound, our priorities are regarding our recovery connection outlook priorities in reevaluating and we've capital XXXX

on us intend allocation Cinemark's pleased balanced quarter on quarter the us with look As quarter to and our long-term February. Overall, to successful to call of creation we our as emphasis strong open year-to-date we as make focused third I to has in value evidenced advancing on shareholder progress we operating well. as ability which prudent August, conveyed earnings our deliver quarter commitment a results more striving that with prepared yield priorities continuing in capital and fulsome performance. continue now I'm and the we provide like an would the update by box and our our our positioned allocation on maintain keenly fourth to company concludes to questions. third remarks, steadfast expect our for team's for forward. In during maximizing the execute line closing, our would strategic disciplined earnings results. Operator, financial remain most in second We approach capital up exceptionally well and call initiatives, that as industry-leading strategic office to to

Operator

JPMorgan. question from Karnovsky [Operator Instructions] Today's first David coming is of

David Karnovsky

past, don't there's would pulled one the trade supply discussed here least expectation get rethink of streamers in QX in then until been the for visibility the have a if said by really get press on you've you past an great. on year did ramp about be XXXX, you some in slate But And the a to theatrical you year-end. full streamers. current that off their at update in film next and know talk the I though output. Sean, see any We

go So I contribution about forward. wanted that we to see as how you're thinking

Sean Gamble

Sure. the for David. Thanks questions,

following You're But early will announce year on the we continue when studios smaller right, to impact films continue year. next trajectory XXXX to that the Hollywood the the bit this little XXXX assess the months do XXXX that overall timing titles just year. Obviously, tend the studios volume spring somewhere on plant and dates a full back the larger the their we're strikes will had early, coming still next to fully their but with to between recovery bit a based of fill out and slates. over expect into

year do stages. as a find in XXXX team, So -- optimistic big from with They've rebound a XX next excited continue coming by is the to our by They It's their recently about. But business. hear year of up little United referencing that we we'll they to look -- distribution way optimistic to a We're taken learning content from what titles still were believe, in get disappointed all a they're at to into releases way investing more they'll really same of time, FX to in about on that to where that the those nice we you're that be call, movie of the we're able their we revitalizing still the Artists indicated of next films. heavily shifting. situation kind addition we studios, to on know yes, pre-pandemic has time, on fulsome early obviously footing. there they've but case and we I leaned just into next at in one Amazon, MGM. could very was you've got based that your who streamers, on recovery. Specific remain really the got provide What remain what Wolf, question on

significantly have this anticipated. they more than in something they're think to on I XX And next at stage of year. excess we track films are So leaning

And from didn't growth but continue those further from multicultural be I that and films, it, streamers. things, we to optimistic nontraditional So continue content see about you then things to think also, between what X with sort. mention of anime we'll content,

David Karnovsky

one for Melissa. Maybe just

the side, as concession we've of the commodity was time, comes as seen On steady. figure are cost that lowest a in prices revenue, some percentage

You inflation. mentioned even

how mix So this here? factor to of think the is there should percentage going And consider sustainability we a forward? about

Melissa Thomas

Thanks Sure. for the question.

factors well as offset COGS driving rate pricing as some products, categories, for that, candy as actions primarily candy our there rebates were again, shift of partially lower-margin favorable as on and was and inflationary nonalcoholic on concession some mainly quarter, strategic including, well the certain as towards by couple that a So concession a beverages, well. pressure merchandise

that's one would on around the and came Now of concession callout those I just mainly QX point benefit was that concession rebates, X a make timing that is the rebates, from favorable in item.

COGS So QX. going the year-to-date rate our COGS for rate is to proxy be better than a

to year COGS then to reflect our from as pressure we mix. And we expect do persist. how modest the rate, well last levels expect year's inflationary COGS to beyond rate as as thinking inflationary we're may again, product we term, those about continue pressures a full of terms again step-up longer XXXX, think In due

had continue do oil, we've namely to commodities, commodities, some there are rise. ingredients that coco are which on candy While and palm other easing key

we'll continue to impacts keep rebates, So concession But look through those would there category strategic there element in say and where to favorable efforts management. to offset sourcing, the pricing a is with QX, possible mind. our timing I proactive around

Operator

question The ROTH from of coming Eric next Capital. Handler is

Eric Handler

popcorn when you revenue, like type coming of at look that perspective give any or of if items, on concessions these now of or some buckets you other wonder your -- is if meaning could metrics how much I you merchandise? sort from non-food

Sean Gamble

That question, to grow. continues Thanks Eric. for the

of And and popcorn include at also it just typically terms in with tubs the in inside out of pure buckets. and fountain that the broken in and food haven't cups it we there's We split that. look tend merchandise. that merch to drinks X the then There's of

sales. We've popcorn So tubs Obviously, in-theater at it see we terms see have We goods has we out an that nice has viral where gone prompted and channel which is haven't expanding split to of recently, that nice also but incremental of continue consumption. e-commerce those source some also option been actually in types of the this growth. and theaters, sell our of growth. been having increase to our a those of an it stage, beyond area

that see per of future. many and we'll we we do our color the one cap so the So more look it's continue areas and of into do forward to growth part that on we'll as carrying just are something in think year-over-year, that providing something

Eric Handler

Okay. And just a follow-up question.

all that and So in look, push of we take awareness of do sort audiences advantage coming XXXX. of are Club wave? improved sales the of big think you and can how big How movies aware Movie ahead And big the maybe acutely of coming titles aware XXXX maybe of your of to are Wall Street this? out you were

Sean Gamble

been at there, trade industry It's continue always something are actually a question negativity, aren't some great that counter awareness association that better and entirely and just our of media sometimes about how NATO of accurate articles to to we've moviegoing. in create out discussing a which the level negative

showcasing can there -- more So in that day to more theaters, concept we're but may exploring be are the certain with color there that are we are upcoming like provides films. Clearly, there things awareness we the are that trailers that even of movies do. an

the consumers send just million We XX out members. tremendous we access And all like to. to have we amount, to million loyalty have have a we about our addressable connectivity XX-plus talk communication we over of volume

early. good you're build we're compelling, more how can that the continue we an ongoing year So right, is out, do try and and is content hype effectively to of very it's that XXXX just but next that to to both some them conversation because sending

Operator

coming Omar from Mejias Fargo. The of next is question Wells

Omar Mejias Santiago

market came having from above organic constraints quarter. performance, very was for levels in of films the strong historical performance and including of box maybe share capacity Could Maybe despite office strong you Sean, gains? the share and outperformance, a drivers overall PLF mix versus unpack

Sean Gamble

Omar. question, the for Yes, right. Thanks you're Sure.

we've a been especially in outperformance biggest the a component horror, pursuing our While those with really really in consumers, levels relative in of films, nostalgia I overcome probably that of us expand the the points our across share particular. we the July, circuit. us XXX that as audiences things quarter approximate in to constraints bit we And the capacity this of or films, helped connected. would resonated past the pre-pandemic some one more seen market U.S. definitely was that of to about say also but of initiatives -- really mix well more grew particularly saw in basis like in incremental that versus all the Family, hit the talk our we've we're so that certainly connect benefit and volume those than

Omar Mejias Santiago

more Maybe Melissa. one for

have assets. actively guys market new to potentially You about on and opportunities capitalizing talked adding

with you this attractive looking America North of in be As any South would dividend opportunities or period there exit uncertainty to M&A in potentially to do in especially you see color still the footprint, helpful. continue potentially to even becoming some early XXXX, assets America? expand and reinstate the Any available

Melissa Thomas

Sure.

just I'll talk allocation a So first from standpoint. broadly capital

take M&A investments strengthening success, as of Certainly, remarks do to accretive capital the near-term mentioned I well pillars. rebounds. Sean, want with have in So allocation those you the my pillars excess within prepared X long-term our a in the on ultimately, X focus consideration as add evaluate to the market sheet, on a is side? industry and and the we shareholders, some investing balance capital specifics first returning as priorities opportunities we that

Sean Gamble

investment the is international. I able tends major we each think to it very do. than come the said, far that more to who industry start the for are our market the country, and amongst make period, in continues higher quality have want you would-be to well mentioned really a that the haven't through that like sellers. But assets, think there's U.S. to met limited quality consistently more be Thus of now and the assets mean, rebound, kind the to certainly financially the types to the seller don't come particular turn we opportunities tougher in landscape our thresholds market to surface, sell corner or LatAm, are know the operators and available terms in LatAm. assets operators so of do those potential expectations what as as I probably of to that market, down of available. in far, a we're evaluating concentrated might it a of Yes. opportunities you

U.S., the a more so. necessarily or to need not for could there's opportunities But surface the start sell. So see to attractive in them next we think I in do year

Operator

Macquarie question is The next Beynon Management. coming of Chad Asset from

Chad Beynon

gave Sean, about. us of you which slate, excited kind a the preview XXXX blockbuster and into well we're all aware

the Hollywood didn't the American be or you as some from aware we're which this differences about quarter, you movies do Latin what well, terms thinking some levels interest America? underperformance that that about in think is a in stark think we attendance noted down resonate there in will of As of content Latin market, of standpoint the in

Sean Gamble

question. Great Thanks.

films you the be Avatar well resonate I How that -- films World in to we Paddington Train films it think When market. all Zootopia, those those and Your relatively and likely year, totality at Peru, all Dragon, of like Minecraft expect Jurassic in the will will very country, in X look obviously, across balanced. like the

like On the a to even a Mission the a relative the under-index next certain may Impossible, side, to X, America, Captain a bit Part film U.S. those flip like Wicked: degree,

you will a relatively in titles see in But of of whole see think when year, the be release. the types we depending on fluctuation to balanced performances those the So it could comparison quarter-to-quarter on of the we'd U.S. bit little

Chad Beynon

question of there thinking next raise because just you the a the opportunities opportunities getting? But frequently my then prices And secondly, prices? XX adjusting how there to with currently the about right And good then the months, members because maybe members the communication here content this are to you are deal are to is, of Okay. with about how in just talked are Movie And now. all guess XX grow I of Club content?

Sean Gamble

unless I and increased continue we Well, it because members be and that the you degree and that. free. derive from with to mean, pleased want I'll the broadly the see and satisfaction of mean anything means, Movie really performance value feel speak all our Club Sure. of to of add I by moviegoing we frequency

for in mentioned, with value our enhanced delight types for XX% and now like and from ways club feedback accounting to the events great of we've get looking add box and surprise approximately things consistently the of As into constantly U.S. our We we're that. members, it's office

question In base over pricing, on time-to-time terms do to of ticket look pricing of that, your or we focused what's obviously, at and kind specific the level we're our on comment parity prices. of the relative

to So make that in stays sure we want line. that

And conscious price potentially of the time, can we're base. not same of appropriate that our too agitate place. So increases consumer frequent in an having staying that at

of And So is pricing a of team a and well. lot we to applies a on as Club theater whole it that have at drive using ton whole Movie looking a at that decision-making. the level to data

So smoothly. at. know we'll too that to add if a not don't look price And it's that. there's at, something long we had to -- increase went ago, you'd if look continue I do Melissa, We which anything very

Melissa Thomas

grow I reiterate, think which the value Club, about within think, still think overall Movie that customer the continue for subscriber there. I at to just base, looking that we we runway trying would way have it the we is proposition to

is also seen balancing consumer we've as with receiving. been it's base But date. really the we've again So results happy those and pricing with the Sean benefits the to really our said, dynamics,

Chad Beynon

we from is agitation the see streamers what less The than definitely personally.

Operator

The of Morgan Duran next coming Daniel Stanley. question is from

Carlos Daniel Duran

to XXXX? assess dividends buybacks get you you the as back to of in do How versus attractiveness shareholders returning capital

Melissa Thomas

buyback, we excess and priorities budgeting is as allocation strategy be to process. And which overall capital well, our that our shareholders, that's part XXXX evaluating looking capital of we're we that, and versus of our as terms in so mentioned, part reevaluating capital of as allocation buybacks. So at something, as our stock dividend returning pillar third will dividends

both will different shareholder we trying But what are of those. both we're maximize There we're returns. those. a taking ultimately would imagine, value you certainly do in and As of considerations is comprehensive approach, evaluate long-term to and

on So be going that decisions guiding overarchingly we allocation will strategy that make forward. the our capital

Carlos Daniel Duran

this Got market do you And share market at are a we seen any And you've talked on XXXX the believe And share share to of already gains change assume it. just due of ahead? as continued versus sustainable? years one. gains balance Is the quick market we've kind these basis, But should the stress on market second overperformance levels a office year the in share full recovers sheet further box competition? quarter.

Melissa Thomas

Yes.

I can with start one. So that

it trend lower market we fourth I that share think our our start QX does mentioned. to on year-to-date think to constraints been fluctuate maybe that quarter-to-quarter upon mix. as during quarter market because I'll may dependent performance it's our the about So film as content the tends expect We well relates with important and than strong -- resonate specifically, genre running And remember content share mix to with due well as you possible that it's to do as family suburban footprint. as capacity quarter have to

causing as share of to some on such bit. Wicked more metro, However, the content our may the slate a skew moderate

have do some there. could but just to be out, box we'll how expect So we pullback office there shakes see the

of share share. up overall constraints ramps as on hit that Beyond those may release improvement we think be a believe to back expectation that our more reasonable year seating we a wide basis XXXX, full volume start pre-pandemic and continues basis points that XXX of relative to we limit capacity do to results our

Operator

coming is of from question MoffettNathanson. next Fishman The Robert

Robert Fishman

have XX and for members, Movie member and one the then for Melissa. Sean up you Reward just start Cinemark following I'll on prior Sean, can conversation bundling Movie your talk answer about million the joint one Club about with moviegoers? loyal their even these how of And subscription studios offering to services to partner the target considered to streaming with or you any bring partnering fans? you a

Sean Gamble

in studios demonstrate we of I Club, able our of that programs. I Well, in how consumers case the upgrade. Sure. both -- with Movie to been to mean, leads think to increased lot certainly, mean, selection increased I partnership how moviegoing of a have we've frequency, look,

sort. promotions types of special us of given that they've So screenings and with things

into loyalty When overall can We gear types different that joint try carousel we're they that that get with those those sort of know they overall put sale. that things specific mass, that a to convert somebody as like haven't of they into through. have we a and try get film, For of if credits consumers program, certain select part movie to our we the example, and of them able of promote just used, consumers upcoming work can content it's has amount them ticket also an to we piece our that if to to consumers and rewards marketing as promos a efforts. a target to an

things So that that range of there's a do we there.

their far loyalty the partnering in loyalty own with Disney. up past to and As Not have marrying of that program everybody with up it has their we as done our kind programs, that. program like

So, Disney does. obviously,

of done the have what and So what is. consider programs structure on the have highly those studios those by supporting ours, loyalty do types those those seen of are would things depending they've I we impact been content. yes, do the their But think to are and that encouraged what have programs we for certainly from that programs

Robert Fishman

the over Melissa, NATO theater $X.X upgrade out theaters, last And next of the of think domestic billion X X the chains. was headline years the largest and put big month across modernize Okay. investment it a I to

competitive do spending way to So CapEx like that peers, relative how in more maybe help And future think think be over maybe broadly, about initiatives considering period? planned everyone positioning any Cinemark to bigger to keep is Cinemark's your else? about time ahead your any you that you just investment what will of

Melissa Thomas

Thanks for the question, Robert.

NATO the things report. of couple on a So

they $XXX they normalized investments Within was $XXX us, for our the over part next $XXX we million which include years. So million announce range of did had year number, $X.X few did a to billion million. that of of the that disclosed

will our So do which, do we advantage. about I that for as that that feel continue is other to -- expect theatrical would has Cinemark. made experience And a to and circuit think if levels further competitive enhance may versus look forward, share we've What a our certainly created we our that over-index maintain differentiate investment again, think is the we things that consistent we of the you guests, mention there our peers, that. investments high-quality

So over-indexing we expect to potentially do that occur.

yet, so thing and think a years, about based to to the as that we next the $XXX basis, The specific one expect with couple million grow $XXX we're do I that As based we XXXX, underway to we'll budgeting certainly on on our over there February get XXXX. we -- within normalized of mind while it's we've spending in ROI-generating initiatives in would our can't think possible of provide million. front is you soon for But still around our said we'd that on that expectations range on us, process as call. do keep

we Now could out expectations as do ultimately, flow get into factor box generation important year. next that to XXXX. within the range that levels office will that soon as undertake think as of we cash it's call spend well But in I just as

Operator

coming Mike question from next is Hickey of The Benchmark.

Michael Hickey

Great quarter. Congratulations.

per I'm can seems topic Definitely be proposition seeing And price averaging a daughter, consumer. means on trade-down effect. domestically quarter benefiting from she just think at in sort First for now is some ticket least, have here. her great with would can concession in think scenario a you of the time give position pretty curious pressure XX your of I The a you if that $XX, you're value $X, the friends. of and environment was my just spot, remarkable. patron which this for

sensitive environment? pricing not, that's forward And given first moving of ticket guess here I the Are that do you how And are the think given you are you would pricing or patrons So this the benefiting question. state second one be about the your -- consumer? here? in thinking how

Sean Gamble

an questions, the for Mike. one. interesting It's Thanks

is cycles. That we've theatrical historically seen of macroeconomic something right. broader the exhibition trends tend will is to You're buck

where little clearly coming is are generally of of we're out guess market, localized being disposal an entertainment consumers the at their of be affordable, because past we recessionary the one to out. the more I difficult in a house of what consumers' and it's get people when seen I extent want to movies, or the from the that benefit theory, biggest more movies. periods inflationary which fun. The So pockets that of to tease benefiting we've mean content that from some to a to have choices premium strength continue pinched, in is market in bit driver for they

premium marketplace remarkable, And and what is in in throughout we now, even dip those of food see start bit the in to some I in see to I've people compelling and seen will this coming the tough to tend I've content offerings always a the America a be example, just and of out maybe anticipated their elect here oh, when some enhanced and and the we'll think we that seen is then we've we've out. where mean, are options they periods, had. Like it a come to in beverage U.S. people have. those theaters haven't always electing I we continue in one Latin indulge found many consumption, to the So people of that continue downs radical. that ups bit And or maybe little more of to

So we're not seeing it.

and kind think in. So yes, coming expensive is. benefit tease we much how on bit specifically I activity of of hard a from more do that people It's more out maybe expensive downgrading that type vacation to

Melissa Thomas

around then, pricing And I'll of Yes. sensitivity forward, around price. asked moving to consumer your and Mike, you question take also second the part

the So is to we that do moviegoing deterrent price. #X know

office. and in an very So overarching analyze we're given basis, mindful our of that that to on is is something box ongoing attendance strategy certainly we maximize

monetize revenue. can we ultimately, So further ancillary with

of mindful price. very we're So

decisions. our lean approach data a continue and and surgical pricing take to to into analytics We very

to forward, domestic modestly you do As we look our prices. to continue grow opportunity see ticket

but we fluctuate you room do film for ticket price. see As know, further on based the on do quarter-to-quarter growth they mix,

would the fourth to Taylor be for term Just we Swift just of the that near lapping are I mindful quarter from in callout one make is year. last

So mind in of think to beyond have ticket we continue But prices. able our might QX to kind slightly to down. keep pricing expect in growth be that as modest to flat just more we broadly XXXX, be

Operator

The coming next Barrington Jim from is question Research. of Goss

James Goss

in of terms might about recent fit You've something others in wonder that how maybe And improving, successful. while industry, film may utilization or more quarters. need [indiscernible] better is Cinemark own conjunction be and about in its talk flow might And might lessening the that platform to whatever, somewhat Fathom be unique be to in the alternative improved in the might way some going options discussing I both forward, a something talked this on content IMAX since create with initiatives can if you yesterday. was

Sean Gamble

Well, see films that lot some now much. back them. come we're long bit were pre-pandemic because more finally of larger than into this I've there yes, be I think that thing. recovery, that. On films continue seeing audience and been will more as to response never nontraditional to had with there Sure place a growth content. realizing believer frustrated a it in a is off basis, we am And types further for there's personally potential these the in a a fold just a taken thrilled space really go-forward of volume I solid for even the as Hollywood

at films even. doing of considerable So these the some Hollywood of movies are level business

of optimistic you some at you Taylor to films success multicultural Beyonce the you start look the year. of at If content, some we'll the concert look more as of faith-based see that at look and when concert, well Swift some last

the the week going a our volume. in mind, So substantial perhaps and midst program a the big amount in coincide But content. screens we've most summer of theaters, the there's scheduling sure these of ability in those parallel to with keep programming X-week in a the number of and of making of got Hollywood there's a be to timing, with don't that where always period already or bit

be think of source it felt represent So X% office box office. to I could definitely it up so to of can box a continue lift. always We've or

it's about year, For it last XX%. still year, And us, been XX%. year-to-date, was this

right place think to a and go-forward on again, over-indexing be to So continue it it's -- now. continue grow. to hopefully And have will basis its I

James Goss

Or with And Okay. some the offerings done? you might are of that rights the that any there will still around of get network in way headway live events this country? make getting big

Sean Gamble

Q&A mean theater Well, network. live do we done across We've within to Cinemark yes. ability to as we've ability to only sessions well. and but our events, I live we mean, network, that. the the broadcast broadcast have our chains BTS broadcast do we that We not other I live. have

been that you're ESPN, Disney If is past a because the of it had and in on to rights complicated with But that. sports, like commenting more success specifically relationship through unraveling that complicated their in you're sports talking area We've of where a able their with the about, to ownership some sports navigate. and pierce traditional area challenging we've that. is in

But of work there's we've still to there. consumer So a and done fantastic response done events, be there's to gaming it. types

it's response when So there limited types there's to been it's another of date, phenomenal I'd say opportunity pocket number events fan things. but have there's been done the been in where those there, we've certainly of and

James Goss

Okay. thing. One last

very Your notable heavy. upcoming films are franchise

whether to should push some of experiencing marketing I'm Club efforts that some Movie and of terms helping creating those proactive But demographic the your your might if content So also breadth give projections. of members. wondering comfort is breadth future shifts you talked also you've that's may about developing. that content in be that be and

Sean Gamble

about look a of for our suggests We it's absolutely wide they films means amount that business mid-tier They content on franchise necessary. And big support, the not by tend no non-franchise talk portion we the will are. healthy most of that speaks is more original films Club are range right, members, mean films high films frequent box some smaller office. consume Movie at the industry calls non-franchise a drive on and important. our larger do to compelling a that believe potential Absolutely. types bigger you're moviegoers, broad these of and those and the base. to that of most for audience films. and to focus We obviously I what But that of is the

look content. that those types opportunities to just the So back type everything of fans kinds optimism provides a fans as forward it's one of of amount as who fills we more as see specific things that content for consume in, gives greater us it more that films of as of -- of well the of

of that bit type improves that think equation too for now, becoming by the to and was the which content. more more started the a come And exists a way, -- of struggle degree, large it say see in longer window. a to So studios absolutely on for the I risk release model to that and I that type that, more opportunity flexible lean a we've pre-pandemic that with studios into of would

greater it for So to window for type opportunity I'd more come out a studios to take on way. chances of has allows able of benefits say that film of as and do it's so a in the flexible one that a be profitable

Operator

Laszczyk The Stephen next Goldman of from Sachs. coming question is

Stephen Laszczyk

framing latest expect dynamic curious could slate Just the way to to the Sean, just out in XXXX? you're approaching which give as your ramps on the box the Movie you one industry the And play me. XQ or you competition for either the competitive and extent pricing thoughts how us into at at here might in to be Club.

Sean Gamble

more more just can problem capacity just limits provide. our It's business, occupancies, that on of to concepts Sure. approach we're most scenario a it's continuing initiatives earlier. I'd of just a was In maximum enhance range down films a theaters a our we I to touches probably profitable One, say a wide to. But compelling kind some entertainment could some we're we and consumer-facing couple being of type value to utilized. come tick landscape, as share. we the way our in of come our see fully of have. we to ways, from our competitive our the spoken Melissa referencing terms have mean, do hit share of to I seating think that affect good that we've it as in the

and tremendous our a theater-based maintain competitive edge a on a level and data that's to I to drive there. Pricing we try use just standpoint, very pricing decisions. to So discrete think out those amount -- stay analytics of from

affecting So some some marketplace out But to adversely so demographics, happening of not incidents. we of there. food that's also the and the controls affect consumption doing we're into obviously influenced our what's well. that as of We're dynamics ultimately wanting that It with isn't the perhaps letting in volume are testing attendance. by and whatever things, our plays using of us competition guide beverage

So trying can it both the in or work of up level really optimize to down. that. ways, And

more on it's and lot say there it's about data-driven -- us would of just competition our of consumer-oriented a a kind exercise thinking so So based I than just more analytics of that kind guide so than what is doing.

Operator

Thank would this to I turn comments. for over Mr. closing the to back Gamble point, like you. At floor

Sean Gamble

Okay. Donna. Thank you,

and believe once I'd are more our quarter we in to the I'd impact great we to industry remain all our morning, a forward our And we and about again like thank Cinemark. that the bullish for following initiatives fourth us we our results again of indicative are quarter meaningful continued like future team our Just Have speaking And having look to of day. advancing this reinforce you results. joining in closing, third company. and

Operator

gentlemen, and your for concludes participation. thank Ladies event. This today's you

You day. may disconnect your lines the and this time, enjoy or of log off rest your the at webcast

Cinemark (CNK) 31 Oct 242024 Q3 Earnings call transcript