Cinemark, a leading exhibition giant, recently released its fourth-quarter financial report, showcasing a notable improvement in profitability. The company reported a narrowed fourth-quarter loss of $18.0 million, compared to a loss of $99.3 million in the same period the year before. This positive news was accompanied by a 6.5 percent increase in revenue, which amounted to $638.9 million.
One of the key metrics that demonstrated Cinemark's improved performance was its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA). In the fourth quarter, Cinemark's EBITDA grew to $79.6 million from $73.5 million in the previous year. This growth in profitability is a clear indication of the company's strong financial management and effective cost control measures.
Admissions revenue, a core component of Cinemark's business, increased by 5.8 percent to $322.4 million during the three months ending December 31. Additionally, concession revenue experienced a significant jump of 7.7 percent, reaching $243.0 million. These increases were driven by a 3.6 percent rise in attendance, with a total of 40.6 million patrons visiting Cinemark theaters during the quarter.
Cinemark's success can also be attributed to its worldwide average ticket price of $7.94 and concession revenue per patron of $5.99. These figures indicate that not only did the company attract more customers, but it also generated higher revenue per customer.
In the United States alone, Cinemark hosted 40.6 million patrons in the fourth quarter, compared to 39.2 million during the same period the previous year. This growth in domestic attendance further solidifies the company's position in the market and demonstrates its ability to attract and retain customers.
Cinemark's CEO, Sean Gamble, expressed his satisfaction with the company's performance, stating, '2023 represented another year of meaningful progress for our industry and our company.' He highlighted the positive indicators surrounding consumer behavior and product flow, underscoring the strong fundamentals that support the industry's recovery. Gamble also acknowledged the team's exceptional operational execution and financial discipline as key drivers of Cinemark's outsized results.
Gamble further emphasized the positive impact of the company's ongoing strategic growth and productivity initiatives. He shared his optimism about the future of Cinemark, stating, 'As we look ahead, we remain highly optimistic about the future of our company and our ability to fully capitalize on our industry's continued recovery.'
The financial report from Cinemark serves as promising news for the company's stakeholders and the industry as a whole. It demonstrates Cinemark's ability to adapt to changing market conditions and its commitment to delivering exceptional movie experiences to its customers. With a strong financial position and a clear growth strategy, Cinemark is well-positioned to thrive in the evolving landscape of the entertainment industry.
