Core Viewpoint - Cinemark Holdings, Inc. is set to host Taylor Swift's event, "Taylor Swift | The Official Release Party of a Showgirl," celebrating her twelfth studio album, showcasing her music and visuals in theaters across the U.S. from October 3 to October 5 [1] Company Summary - Cinemark is recognized as one of the largest and most influential theatrical exhibition companies globally [1] Industry Summary - The event highlights the trend of integrating live music experiences with theatrical releases, potentially attracting a large audience of Taylor Swift fans, known as "Swifties," to theaters [1]

Core Insights - Rokt is expanding its collaboration with Cinemark to enhance customer experience by delivering relevant non-endemic messages on the ecommerce payment page [1][2][3] - The partnership aims to leverage Rokt's AI technology to unlock new monetization opportunities and improve customer engagement during the transaction moment [3] Company Overview - Rokt is a leading ecommerce technology company that utilizes machine learning and AI to enhance transaction relevance, powering over 7.5 billion transactions in 2025 [3][5] - Cinemark Holdings, Inc. is one of the largest theatrical exhibition companies globally, operating nearly 500 theaters and over 5,500 screens across the U.S. and Latin America [4] Financial Performance - Rokt reported a revenue growth of over 40% year-over-year in 2024, reaching $600 million [3]

Core Viewpoint - Cinemark Holdings Inc. has shown short-term stock performance improvement but has experienced a slight decline over the past year, prompting long-term shareholders to consider the company's price-to-earnings (P/E) ratio for further analysis [1]. Group 1: Stock Performance - The current share price of Cinemark Holdings is $28.46, reflecting a 0.35% decrease in the current market session [1]. - Over the past month, the stock has increased by 6.09%, while it has decreased by 0.46% over the past year [1]. Group 2: P/E Ratio Analysis - The P/E ratio is a critical metric for evaluating a company's market performance, comparing the current share price to the company's earnings per share (EPS) [5]. - Cinemark Holdings has a lower P/E ratio compared to the aggregate P/E of 79.77 for the Entertainment industry, suggesting potential undervaluation or weaker performance expectations [6]. - A low P/E ratio can indicate undervaluation but may also reflect weak growth prospects or financial instability, highlighting the need for a comprehensive analysis of the company's financial health [9].

Core Insights - Major US indexes are reaching record highs, indicating a strong stock market performance [1] - Signs of economic deceleration are becoming apparent, suggesting potential challenges ahead for the economy [1] - There is growing optimism regarding a potential rate cut from the Federal Reserve, which could provide a boost to the US economy [1] Economic Indicators - Record highs in major US indexes reflect investor confidence and market strength [1] - Economic deceleration signals may impact future growth and investment strategies [1] - Anticipation of a Federal Reserve rate cut could lead to increased consumer spending and investment [1]

Core Insights - Cinemark Holdings, Inc. achieved a significant milestone with "The Conjuring: Last Rites," marking it as the company's second-biggest domestic horror film opening weekend of all time, highlighting its strong position in the theatrical exhibition industry [1] Company Performance - The success of "The Conjuring: Last Rites" underscores Cinemark's ability to deliver premium theatrical experiences that resonate with audiences, reinforcing its market presence [1]

Core Insights - Cinemark Holdings reported revenue of $940.5 million for the quarter ended June 2025, reflecting a year-over-year increase of 28.1% [1] - The earnings per share (EPS) for the quarter was $0.63, up from $0.32 in the same quarter last year, but below the consensus estimate of $0.78, resulting in an EPS surprise of -19.23% [1] Financial Performance Metrics - The average ticket price in the U.S. Operating Segment was $10.39, exceeding the analyst estimate of $10.13, while the International Operating Segment's average ticket price was $3.99, above the $3.79 estimate [4] - Concession revenues per patron in the U.S. Operating Segment were $8.34, slightly above the $8.29 estimate [4] - Attendance in the International Operating Segment was 21 million, below the average estimate of 24.95 million [4] - Revenue from U.S. Operating Segment Admissions was $383.4 million, slightly below the estimate of $385.42 million, but represented a year-over-year increase of 33.4% [4] - Revenue from International Operating Segment Admissions was $83.7 million, below the estimated $90.91 million, but showed a year-over-year increase of 6.8% [4] - U.S. Operating Segment Concession revenue was $307.6 million, below the estimate of $312.29 million, with a year-over-year increase of 32.9% [4] - International Operating Segment Concession revenue was $70.1 million, below the estimate of $72.65 million, reflecting a year-over-year increase of 14% [4] - Revenue from U.S. Operating Segment Other was $68.3 million, exceeding the estimate of $64.34 million, with a year-over-year increase of 28.4% [4] - Total revenue from Admissions was $467.1 million, slightly below the estimate of $472.97 million, with a year-over-year increase of 27.7% [4] - Total revenue from Other was $95.7 million, above the estimate of $90.45 million, with a year-over-year increase of 26.8% [4] - Total revenue from Concession was $377.7 million, below the estimate of $382.7 million, with a year-over-year increase of 29% [4] Stock Performance - Cinemark's shares have returned -12.5% over the past month, contrasting with the Zacks S&P 500 composite's increase of 2.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Group 1: Company Performance - Cinemark's revenue increased nearly 30% to $940 million, with net income more than doubling to $93.5 million compared to the previous year [3] - Admissions revenue rose 28% to $467 million, while concession revenue increased 29% to a record $378 million, surpassing $300 million for the first time [4] - Attendance grew by 15.8% to 57.9 million patrons, and the Movie Club loyalty program saw a 12% year-over-year increase in subscriptions, reaching 1.45 million members [4] Group 2: Industry Trends - The North American box office for the second quarter reached $2.7 billion, up more than 35% year over year, driven by a series of compelling new releases [1] - The year-to-date tracking shifted from a 12% deficit versus 2024 at the end of Q1 to a 14% gain by the end of June [2] - Family films have been particularly successful for Cinemark, contributing to the surge in attendance and revenue [3] Group 3: Future Outlook - Cinemark's CEO expressed optimism about Apple's future theatrical plans following the success of "F1: The Movie," indicating potential for more theatrical releases from Apple [5] - However, there is skepticism regarding Netflix's strategy, as it appears they do not have immediate plans to change their approach to theatrical releases, despite the data supporting the benefits of theatrical distribution [5]

Financial Data and Key Metrics Changes - Cinemark reported a 28% year-over-year increase in revenue, reaching $941 million during the second quarter, with adjusted EBITDA rising 63% to $232 million, marking a margin expansion to 24.7% [9][19][24] - The company achieved its highest quarterly domestic admissions revenues since the pandemic and the third highest quarterly result of all time [8][9] - Net income attributable to Cinemark Holdings Inc was $93.5 million, resulting in diluted earnings per share of $0.63 [25] Business Line Data and Key Metrics Changes - Domestic admissions revenue was $383.4 million, with an average ticket price of $10.39, reflecting a 5% year-over-year increase [20] - Concession revenue grew 33% year-over-year to $307.6 million, marking the first time exceeding $300 million in a single quarter [20] - International revenue grew 12% year-over-year to $181.2 million, with adjusted EBITDA increasing 32% to $44.1 million [22][23] Market Data and Key Metrics Changes - The North American industry box office reached $2.7 billion in the second quarter, up more than 35% year-over-year, with a significant recovery in consumer enthusiasm for theatrical experiences [5][6] - Global attendance grew 16% year-over-year to 57.9 million patrons, with domestic attendance at 36.9 million guests [19][20] Company Strategy and Development Direction - Cinemark's strategy focuses on enhancing guest experiences through technology, service quality, and premium offerings, including expanding reclining seats and introducing more PLF formats [10][14] - The company is committed to capital allocation strategies that strengthen its balance sheet, invest in long-term growth, and return excess capital to shareholders [26][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the film pipeline ahead, anticipating a strong fourth quarter with a robust lineup of films [17][68] - The company remains optimistic about long-term margin potential driven by box office recovery and strategic initiatives [91] Other Important Information - The company ended the quarter with $932 million in cash and generated $246 million in free cash flow, reflecting strong cash-generating capabilities [26][28] - The loyalty programs, including Cinemark Rewards and Movie Club, significantly contributed to domestic box office proceeds, accounting for over 55% and nearly 30% respectively [14][15] Q&A Session Summary Question: Discussion on convertible notes and capital allocation - Management indicated intent to settle warrants in shares, with decisions contingent on stock price and liquidity considerations [34][36] Question: Impact of new tax legislation on cash flow - Management expects meaningful benefits from new legislation regarding bonus depreciation and interest expense limitations, though quantification is still in analysis [40][41] Question: PLF strategy and co-branding opportunities - Management emphasized the importance of providing a premium experience across all formats, with PLFs accounting for about 15% of domestic box office [48][49] Question: General and administrative expenses outlook - Management anticipates growth in G&A due to targeted investments and rising costs, despite a decrease in stock-based compensation [52] Question: Concession costs and inflation management - Management expects higher COGS rates due to inflation and product mix shifts, while pursuing strategies to mitigate these impacts [55] Question: Future content releases and international performance - Management noted a strong fourth quarter lineup and positive performance in Latin America, despite tough year-over-year comparisons [70][74]

Financial Data and Key Metrics Changes - Cinemark reported a revenue increase of 28% year over year to $941 million during the second quarter, with adjusted EBITDA rising 63% to $232 million, achieving a margin expansion to 24.7% [9][17][19] - The company achieved its highest quarterly domestic admissions revenues since the pandemic and its third highest quarterly result of all time [8][9] - Net income attributable to Cinemark Holdings Inc was $93.5 million, resulting in diluted earnings per share of $0.63 [24] Business Line Data and Key Metrics Changes - Domestic admissions revenue reached $383.4 million with an average ticket price of $10.39, a 5% increase year over year [18] - Domestic concession revenue grew 33% year over year to $307.6 million, marking the first time exceeding $300 million in a single quarter [19] - International revenue grew 12% year over year to $181.2 million, with adjusted EBITDA increasing 32% to $44.1 million [22][21] Market Data and Key Metrics Changes - The North American industry box office reached $2.7 billion in the second quarter, up more than 35% year over year [4] - Global attendance grew 16% year over year to 57.9 million patrons [17] - The company maintained strong market share gains compared to pre-pandemic levels, benefiting from a favorable content mix [18][21] Company Strategy and Development Direction - Cinemark's strategy focuses on enhancing guest experiences through technology, service quality, and premium offerings, including reclined seating and advanced projection technology [10][12] - The company is expanding its premium large format (PLF) offerings, including DBOX and ScreenX, to enhance the movie-going experience [12][50] - The film slate for the second half of 2025 is expected to be strong, with a variety of genres and franchises set to release [7][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future of theatrical exhibition, citing sustained consumer enthusiasm and a strong film pipeline [7][16] - The company is optimistic about long-term margin potential driven by box office recovery and strategic initiatives [90] - Management noted that the upcoming film slate is expected to drive attendance and revenue growth, particularly in the fourth quarter [68] Other Important Information - The company ended the quarter with $932 million in cash and generated $246 million in free cash flow [25][28] - Capital expenditures for the year are expected to be approximately $225 million, with spending typically back half weighted [80] - The company is focused on managing its balance sheet and reducing interest expenses through proactive measures [26][28] Q&A Session Summary Question: Discussion on convertible notes and capital allocation - Management indicated that the current intent is to settle the warrants in shares, with decisions contingent on stock price and liquidity considerations [34][36] Question: Cash flow benefits from new legislation - Management noted that it is premature to quantify the cash flow benefits from the new legislation but expects meaningful benefits from 100% bonus depreciation [40][42] Question: PLF strategy and co-branding - Management emphasized the importance of providing a premium experience across all auditoriums and noted that PLFs account for about 15% of domestic box office [49][50] Question: General and administrative expenses outlook - Management expects G&A to increase due to targeted investments in headcount and rising costs, despite a decrease in stock-based compensation [52][53] Question: Concession sales and merchandise growth - Management reported that merchandise sales have grown significantly, with a year-over-year increase of nearly 240% [61] Question: Content outlook for the second half of the year - Management expressed optimism about a strong fourth quarter film slate, despite a typical slowdown in August and September [68][69]

Core Viewpoint - Cinemark Holdings reported quarterly earnings of $0.63 per share, missing the Zacks Consensus Estimate of $0.78 per share, but showing an improvement from $0.32 per share a year ago, indicating a -19.23% earnings surprise [1][2] Financial Performance - The company posted revenues of $940.5 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.75%, compared to $734.2 million in the same quarter last year [2] - Over the last four quarters, Cinemark has surpassed consensus EPS estimates just once and topped consensus revenue estimates three times [2] Stock Performance - Cinemark shares have declined approximately 13.3% since the beginning of the year, contrasting with the S&P 500's gain of 7.8% [3] - The current Zacks Rank for Cinemark is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.59 on revenues of $897.19 million, and for the current fiscal year, it is $1.61 on revenues of $3.26 billion [7] - The estimate revisions trend for Cinemark was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Film and Television Production and Distribution industry, to which Cinemark belongs, is currently in the top 29% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]