Cinemark Holdings: Not Flashy, But The Best In Class
Johannes Salim, CFA
Johannes Salim, CFA
Can Cinemark Continue To Outperform Overall Industry?
Tue, Mar. 1, 10:27 AM
- Carmike Cinemas (CKEC +11.5%) rallies after posting strong Q4 numbers.
- Average attendance per screen was up 5% to 5,618. The company added 23 screens over the last year to end the quarter with 2,930.
- Average admission price per patron +9.9% to $8.08.
- Average concessions and other sales per patron +17% to $5.33.
- Shares of CKEC are at their highest level of the year.
- Exhibitor peers AMC Entertainment (AMC +3.8%), Cinemark Holdings (CNK +2.5%), and Reading International (RDI +1.8%) are also tracking higher.
Wed, Feb. 24, 7:43 AM
- Cinemark Holdings (NYSE:CNK) says it tallied a 6.1% increase in admissions revenue to $429.7M in Q4. The average ticket price during the quarter was $6.42. U.S. ticket prices were 8% higher at $7.68.
- Concessions revenue was up 8.4% to $232.8M. Concession revenue per patron was $3.48, led by a 10% gain in the U.S. to $4.12.
- The company's expense for film rental and advertising increased 9.9% to $239.21M.
- Previously: Cinemark Holdings beats by $0.03, misses on revenue (Feb. 24 2016)
Tue, Feb. 16, 1:31 PM
- Movie theater stocks are solidly higher after strong box office showings in both the U.S. and China.
- The Chinese box office smashed all-time records amid the New Year holiday, while 39 movies in the U.S. generated just under $273M for the three-day weekend, up 28% from the V-Day period a year ago.
- Strong gainers include AMC Entertainment (AMC +9.5%), Regal Entertainment (RGC +3.3%), Carmike Cinemas (CNK +1.1%), IMAX (IMAX +7.2%), and Marcus Corp (MCS +2.3%).
- Previously: 'Deadpool' smashes records for Fox with $150M holiday opening (Feb. 16 2016)
- Previously: China's box office sets all-time record (Feb. 15 2016)
Thu, Feb. 11, 1:46 PM
- Movie theater stocks are bucking a weak market day to trend higher.
- The U.S. box office ended 2015 up 4.1% from the previous year to tally $11.126B. The average ticket price in the U.S. was $8.43 and concession spending per patron was up over 5%.
- Notable gainers: AMC Entertainment (NYSE:AMC) +1.3%, Carmike Cinemas (NASDAQ:CKEC) +1.1%, Cinemark Holdings (NYSE:CNK) +1.0%, Regal Entertainment (NYSE:RGC) +1.2%, Marcus Corp (NYSE:MCS) +1.9%.
Dec. 15, 2015, 9:45 AM
- Early movers based in part of the global Star Wars premiere include AMC Entertainment (NYSE:AMC) +2.6%, Regal Entertainment (NYSE:RGC) +2.1%, Cinemark Holdings (NYSE:CNK) +1.5%, Carmike Cinemas (NASDAQ:CKEC) +2.1%, Marcus Corp. (NYSE:MCS) +1.2%, IMAX (NYSE:IMAX) +3.8%, Dolby (NYSE:DLB) +1.5%, Hasbro (NASDAQ:HAS) +1.3%.
- The gains are larger than the move in the broad market.
- Some analysts think theater traffic this month could be a beneficiary of sub-$2 gas prices.
- Previously: 'The Force Awakens' to open in 4,100+ theaters (Dec. 15 2015)
Jul. 30, 2015, 9:05 PM
- After a Paramount Pictures (VIA, VIAB -0.4%) experiment to shrink theatrical release windows launched with two exhibitor partners -- AMC Theatres (AMC +4.1%) and Cineplex Entertainment (OTC:CPXGF) -- other chains are beginning to take up sides, including one giant lined up against.
- Five other chains have signed up to show two low-budget horror films on Paramount's terms: National Amusements (owned by Sumner and Shari Redstone); Southern Theatres; Alamo Drafthouse Cinema; Canada-based Landmark Cinemas; and upscale chain iPic. With the added support, about 30% of the exhibition market has signed on.
- Meanwhile, the country's largest chain, Regal Entertainment (RGC +2.9%), says it's rejecting the plan, preferring to stick with a "traditional distribution model."
- Paramount's idea -- to shorten the 90-day exclusive window that theatrical chains have before a film heads to other formats -- is a change to the status quo that the studio sweetens by offering to share digital revenues with participating chains.
- “The parameters of the current proposal, both economic and structural, simply do not make sense for us given the potential risks to the long-term health of our business,” said Regal CEO Amy Miles on an earnings call today.
- Related stocks: CKEC, CNK, RLD, IMAX, RDI, MCS.
- Previously: Paramount's release-window experiment draws praise -- and worries (Jul. 16 2015)
- Previously: Exhibitors on watch as shorter release window to be tested (Jul. 09 2015)
Jul. 28, 2015, 9:56 AM
- Exhibitor stocks are weak after Carmike Cinemas (CKEC -9.4%) disappointed with its Q2 earnings report.
- The company paid out a higher level of fees for film rights due to the increased mix of 3D and IMAX showings.
- As a percentage of revenue, film exhibition fees rose 270 bps to 58.7%.
- On the conference call, Carmike CFO Richard Hare said he expects the rate to moderate in Q3.
- Carmike Cinemas earnings call transcript.
- Decliners: Cinemark Holdings (NYSE:CNK) -1.81%, AMC Entertainment (NYSE:AMC) -2.89%, Reading International (NASDAQ:RDI) -0.52%, Regal Entertainment (NYSE:RGC) -1.38%,
Jul. 16, 2015, 9:30 AM
- Top execs with Netflix (NASDAQ:NFLX) reiterated during last night's earnings call that negative free cash flow was expected as the company grows internationally. The management team focuses on the ratio of content P&L expense to cash which hovers in the 1.2 to 1.3 range. They expect it to peak at 1.4.
- Though analysts tried to pin the company down on pricing and the potential to increase ARPU (average revenue per user), Netflix is early in the process of figuring out the impact of value added taxes and F/X swings in various markets which makes projections difficult.
- Of note to the movie exhibitor sector (AMC, RGC, CKEC, CNK), Netflix CCO Ted Sarandos says the release of original movies in theaters is largely "symbolic" to differentiate the features from TV movies. Crouching Tiger, Hidden Dragon 2 will be released in the 3D format in China.
- CEO Reed Hastings doesn't have a clear answer on the rocket ride of his company's stock. He notes that he called it "euphoric" when NFLX traded at half its current level, adding "it's a mystery to me" in reference to stock picking.
- Netflix earnings call transcript
- New investment firm price targets: Nomura to $120, Piper Jaffray to $96, Canaccord Genuity to $120, Needham to $111, FBR Capital to $142, Pivotal Research to $155, SunTrust to $95.
- Previously: Netflix beats by $0.02, misses on revenue (Jul. 15 2015)
- Previously: Subscriber growth dazzles at Netflix (Jul. 15 2015)
- NFLX +11.31% premarket to $109.19
Jun. 9, 2015, 11:54 AM
Jun. 1, 2015, 10:05 AM
- Exhibitor stocks are skittish after the Department of Justice asks several chains for more documents relating to an anti-trust probe of the industry.
- The larger theater chains have been accused of using clearance agreements to pressure studios away from using small and independent chains.
- The matter hasn't been escalated to a full DOJ investigation yet.
- Previously: Movie exclusivity deals with theater chains on the DOJ radar (Apr. 17 2015)
- Decliners: AMC Entertainment (NYSE:AMC) -4.4%, Carmike Cinemas (NASDAQ:CKEC) -1.0%, Cinemark Holdings (NYSE:CNK) -0.4%, Regal Entertainment (NYSE:RGC) -0.2%.
Mar. 13, 2015, 12:55 PM
- Carmike Cinemas (CKEC +12.3%) pops after Reuter reports the movie chain is considering strategic alternatives including a merger.
- Sources say Carmike has approached other exhibitors to discuss a potential combination.
- Shares of Regal Entertainment (RGC +2%) and AMC Entertainment (AMC +2.4%) are higher on the day, while Cinemark Holdings (CNK -0.7%) and Reading International (RDI -1%) are sluggish.
- Analysts think a merger in the sector would be closely appraised by regulators.
Feb. 17, 2015, 11:29 AM
- Movie theater stocks are out-performing broad indexes on a down market day.
- A sizzling box office weekend for Fifty Shades of Grey could be the impetus.
- Earlier this year, American Sniper gave the sector an unexpected traffic boost.
- The YTD box is well-ahead of last year's pace with the biggest releases still to come.
- Reading International (NASDAQ:RDI) +0.9%, Marcus Corporation (NYSE:MCS) +0.4%, Carmike Cinemas (NASDAQ:CKEC) +0.5%, Regal Entertainment (NYSE:RGC) +0.3%, Cinemark Holdings (NYSE:CNK) +0.2%, Dolby (NYSE:DLB) +0.4%, RealD (NYSE:RLD) +0.3%, AMC Entertainment (NYSE:AMC) flat on the day. IMAX (NYSE:IMAX) is -2.0% after taking on a Canaccord Genuity downgrade.
- Previously: American Sniper crushes again at the box office (Jan. 26 2015)
- Previously: 'Fifty Shades' sets records
Dec. 17, 2014, 3:45 PM
- Movie theater stocks move higher on above-average volume.
- The rally is helping to make up for a broad decline yesterday tied to threats from the Sony hackers over U.S. screenings of The Interview.
- Though the four major U.S. theater chains and Canadian firm Cineplex (OTC:CPXGF) have all dropped plans to show the movie due to security concerns, there's a buzz among media analysts that a pay-TV operator could strike a VOD deal to rescue Sony Pictures (NYSE:SNE).
- Gainers: Carmike Cinemas (NASDAQ:CKEC) +3.3%, Cinemark Holdings (NYSE:CNK) +2.6%, Regal Entertainment (NYSE:RGC) +1.9%, AMC Entertainment (NYSE:AMC) +4.4%, Marcus Corp. (NYSE:MCS) +1.3%.
Dec. 16, 2014, 6:57 PM
- A disturbing turn in the Sony Pictures (NYSE:SNE) hacking case developed when the hackers involved warned through Internet posts of attacks on movie theaters that feature The Interview.
- The movie is scheduled to debut on December 25.
- "All the world will denounce the SONY," reads the threat.
- Movie theater stocks were lower on the day: Carmike Cinemas (NASDAQ:CKEC) -2.1%, AMC Entertainment (NYSE:AMC) -2.9%, Regal Entertainment (NYSE:RGC) -0.7%, Cinemark Holdings (NYSE:CNK) -2.6%.
- Sony hacking case timeline
Oct. 28, 2014, 10:21 AM| Oct. 28, 2014, 10:21 AM
Jul. 7, 2014, 10:19 AM
- Movie theater stocks Regal Entertainment (RGC -1.1%), Carmike Cinemas (CKEC -0.6%), and Cinemark Holdings (CNK -3%) trade lower after a weak 4th of July weekend keeps movie chains under pressure to meet Q3 projections.
- IMAX (IMAX -0.6%) and RealD (RLD -2.9%) are also lower off the lackluster box office news.
Cinemark Holdings, Inc. is a holding company which, operates through its subsidiaries in the motion picture exhibition industry. The company operates its multiplex theaters in smaller cities and suburban areas of major metropolitan markets. It operates its business in two segments: International... More
Industry: Movie Production, Theaters
Country: United States
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