Cinemark Holdings, Inc. Q3 FY2025 earnings call

• Sean Gamble noted that Cinemark has settled the final outstanding warrants related to convertible notes, fully extinguishing COVID-related debt. • The Board authorized a $300 million stock repurchase program and increased the dividend to $0.36 per annum. • Third quarter North American industry box office was $2.5 billion, down 10% year-over-year, but Cinemark surpassed industry box office performance, achieved highest third quarter domestic market share, and set new third quarter domestic food and beverage per cap record at $8.20. • Upcoming film slate for Thanksgiving corridor and year-end includes diverse titles, and Cinemark launched the 'It's Showtime' brand campaign.

In the third quarter, Cinemark's global revenue was $857.5 million. Domestic operations generated $683.6 million of revenue with an adjusted EBITDA of $140.2 million and a 20.5% adjusted EBITDA margin. International operations had $173.9 million of revenue and $37.4 million of adjusted EBITDA with a 21.5% margin. Alternative content accounted for 16% of domestic box office.

• Board authorized a $300 million stock repurchase program. • Dividend increased to $0.36 per annum. • Targeting $225 million of capital expenditures for the year, with significant weighting in the fourth quarter. • Margin for the year to be driven by attendance, box office performance, market share of food and beverage per cap, average ticket prices, and strategic initiatives; fourth quarter margin expected to benefit from box office recovery, concession per cap growth, and average ticket price increases.

• Macro level headwinds could impact financial health. • Inflationary pressures and other expense headwinds. • Complexities with theatrical windows and sports rights (e.g., World Cup rights affecting Latin America).

Q: Continuing on capital allocation, talk about appetite for M&A and CapEx outlook.

A: Sean Gamble said they have appetite for M&A, focusing on high-quality assets, and Melissa Thomas noted CapEx for 2026 is premature to specify but expect some increase.

Q: Thoughts on fall box office and state of things.

A: Sean Gamble said to look at longer term trends, and November/December slate should exceed last year.

Q: M&A pipeline and alternative content.

A: Sean Gamble said M&A pipeline not deep, but continuing to lean into alternative content which was 16% of box office in Q3.

Q: Margin expectations and World Cup in 2026.

A: Melissa Thomas discussed margin drivers, and Sean Gamble said World Cup rights complicate programming but limited opportunity due to rights issues.

Q: Share growth and premium formats.

A: Sean Gamble talked about strategies to grow share in existing theaters and continuing to lean into premium amenities like ScreenX, D-BOX, IMAX upgrades.

Q: Pricing power and concessions.

A: Melissa Thomas said pricing guided by data and analytics, and Sean Gamble said concessions like merchandise have held up despite macro.

Q: Dividend approach and Paramount's plans.

A: Melissa Thomas discussed dividend evaluation factors, and Sean Gamble said positive conversations with studios about increasing film volume