Cinemark lost $170 million in the second quarter of 2020, when COVID-19 kept movie theaters closed and new films were packed away in boxes.
Wall Street forecast a loss of $1.62 per share on $7.92 million in revenue for Cinemark, according to a consensus estimate compiled by Yahoo Finance. The company reported a loss of $1.45 per share on $8.974 million in revenue.
All told, Cinemark lost $170.4 million in Q2 2020, when the movie theater chain’s ticket sales tallied a sad $37,000. For comparison, over the comparable quarter in 2019, Cinemark’s take at the box office was more than $521 million.
The recently wrapped quarter’s $170 million loss included $19.5 million in restructuring, which included layoffs and theater closings.
So where did the rest of the company’s revenue come from? Cinemark recognized some deferred NCM screen advertising advances in the quarter.
In late June 2020, Cinemark opened five test theaters with library content. Thirteen thousand patrons attended.
“While our company and industry continue to be significantly impacted by the coronavirus pandemic, our team has been working diligently to prepare for reopening our theatres within this new operating environment,” Cinemark CEO Mark Zoradi said in prepared remarks accompanying his company’s financials. “We believe the comprehensive cleaning and safety protocols we have established in The Cinemark Standard, will enable us to effectively operate our theatres while prioritizing the health of our employees, guests and communities. Our test-and-learn theatres have been instrumental in honing the training, communication, and execution of The Cinemark Standard, as well as garnering guest insights regarding its implementation. We are thrilled that 97% of guests surveyed have expressed high satisfaction with how Cinemark is protecting their health and safety. We greatly look forward to initiating the rollout of our theatres beginning August 21st as we welcome our employees and guests back to our Cinemark theatres for great cinematic storytelling.”
Shares in Cinemark, CNK, closed at $11.86 on Monday. The stock market officially reopens at 9:30 a.m. ET.
Cinemark executives will host a conference call at 8:30 a.m. ET to discuss the quarter in greater detail.
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