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Cinemark Holdings, Inc. (CNK)·Q4 2024 Earnings Summary

Executive Summary

  • Record Q4 2024 performance: revenue $814.3M (+27.5% YoY) and diluted EPS $0.33, with Adjusted EBITDA $156.9M and Adjusted EBITDA margin expanded to 19.3% on stronger attendance and operating leverage .
  • Reinstated cash dividend at $0.32 per share annually (payable quarterly), underpinned by $1.1B year-end cash, free cash flow of $315.2M in FY24, and net leverage at 2.2x; near-term priority is cash repayment of Aug-2025 converts .
  • U.S. concessions delivered a record Q4 per-cap of $7.97; consolidated concession per patron reached $6.15; segment revenues and attendance rose sharply across U.S. and International .
  • 2025 setup: capex guided to ~$225M (vs ~$151M in FY24) to accelerate laser conversions and premium formats; film rental rates expected to rise with blockbuster concentration; cash taxes to step up toward ~30% normalized effective tax rate; $8–$10M R&M headwind .
  • Industry/content tailwinds: management cites ~115 wide releases in 2025 (~90% of pre-pandemic) and a robust 2026 slate; potential share tempering as slate bunching introduces capacity constraints, but demand, loyalty, and premium formats support medium-term margins .

What Went Well and What Went Wrong

What Went Well

  • Strong top-line and profitability: Q4 revenue $814.3M (+27.5% YoY) and Adjusted EBITDA $156.9M, with margin expanding to 19.3% on operating leverage as attendance rose to 51M .
  • Concessions and premium formats: record Q4 U.S. concession per-cap $7.97; PLFs were 5.5% of screens but ~13.4% of box office for FY24; D-BOX seat count up ~30% YoY driving ~40% box office growth in that format .
  • Balance sheet and capital returns: $1.057B cash at year-end, free cash flow $315.2M in FY24, net leverage 2.2x; dividend reinstated at $0.32 and plan to repay converts’ principal in cash .
    Quotation: “We are thrilled to reinstate our annual cash dividend at $0.32 per share… another major milestone in our recovery…” — Sean Gamble .

What Went Wrong

  • Cost pressures: film rental and advertising rose to 58% of admissions (+440 bps YoY) on blockbuster mix; utilities/other and G&A increased with higher attendance, insurance, and share-based comp .
  • Capacity constraints and market share tempering expected in 2025 as content bunches; FX devaluation weighed on International even amidst strong attendance .
  • Cash taxes to increase meaningfully (Brazil returning to 34% statutory rate) and capex ramp to ~$225M, plus $8–$10M R&M headwind in 2025, moderating free cash flow vs FY24 tailwinds .

Financial Results

Quarterly progression (Q2 → Q3 → Q4 2024)

MetricQ2 2024Q3 2024Q4 2024
Total Revenue ($USD Millions)$734.2 $921.8 $814.3
Admissions Revenue ($USD Millions)$365.8 $460.4 $406.5
Concession Revenue ($USD Millions)$292.9 $367.3 $313.4
Net Income Attributable to CNK ($USD Millions)$45.8 $187.8 $51.3
Diluted EPS ($)$0.32 $1.19 $0.33
Adjusted EBITDA ($USD Millions)$142.1 $220.5 $156.9
Adjusted EBITDA Margin %19.4% 23.9% 19.3%

Q4 YoY comparison

MetricQ4 2023Q4 2024YoY change
Total Revenue ($USD Millions)$638.9 $814.3 +27.5%
Net Income Attributable to CNK ($USD Millions)$(18.0) $51.3 N/A (swing to profit)
Diluted EPS ($)$(0.15) $0.33 N/A (swing to profit)
Adjusted EBITDA ($USD Millions)$79.6 $156.9 +97% (approx; directional per values)

Segment breakdown (Q4 2024 vs Q4 2023)

MetricU.S. Q4 2023U.S. Q4 2024Int’l Q4 2023Int’l Q4 2024Consolidated Q4 2023Consolidated Q4 2024
Admissions Revenue ($MM)$267.5 $338.7 $54.9 $67.8 $322.4 $406.5
Concession Revenue ($MM)$200.9 $259.7 $42.1 $53.7 $243.0 $313.4
Other Revenue ($MM)$50.4 $68.0 $23.1 $26.4 $73.5 $94.4
Total Revenue ($MM)$518.8 $666.4 $120.1 $147.9 $638.9 $814.3
Attendance (MM)26.2 32.6 14.4 18.4 40.6 51.0
Avg Ticket Price ($)$10.21 $10.39 $3.81 $3.68 $7.94 $7.97
Concession per Patron ($)$7.67 $7.97 $2.92 $2.92 $5.99 $6.15

KPIs (Q2 → Q3 → Q4 2024, consolidated)

KPIQ2 2024Q3 2024Q4 2024
Attendance (MM)50.0 60.4 51.0
Avg Ticket Price ($)$7.32 $7.62 $7.97
Concession per Patron ($)$5.86 $6.08 $6.15

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Capital Expenditure ($MM)FY 2025~$150M planned FY24 spend ~$225M FY25, ~50% maintenance/laser; remainder ROI projects/new builds Raised
DividendOngoingNone (suspended)$0.32 per share per annum, payable quarterly; first payable Mar 19, 2025 (record Mar 5, 2025) Initiated/Reinstated
Net Leverage TargetOngoing2–3x (company target)Maintain 2–3x; FY24 ended at 2.2x Maintained
Convertible Notes (Aug 2025)Near-termN/ARepay principal in cash; call spread protects to $22.08; settle excess in cash or shares depending on stock/cash/dilution Clarified plan
Film Rental RateFY 2025Benefited in 2024 from fewer blockbusters in 1H Rates expected to increase with higher blockbuster concentration Raised
Marketing Spend (% of admissions+concession)FY 20252024 baselineExpected relatively consistent with 2024 Maintained
Cash Taxes / ETRFY 20252024 cash taxes aided by attributes; Brazil under holiday Cash taxes to step up; normalized effective tax rate closer to ~30% Raised
Repairs & MaintenanceFY 2025Deferred maintenance$8–$10M headwind expected in 2025 Raised

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 & Q3 2024)Current Period (Q4 2024)Trend
Premium formats & laser conversionsRecord per-caps and continued ROI in premium formats; capex actions and debt refinancings; Inside Out 2 drove strong slate in Q2 ; Q3 record revenue/EBITDA; per-caps $7.97 U.S. PLFs: 5.5% screens → 13.4% box office FY24; D-BOX motion seats box office +~40% YoY on ~30% seat expansion; laser conversion at ~20% footprint Positive, scaling
Loyalty/Movie ClubOngoing strength; loyalty boosts awareness and frequency Movie Club ~1.4M members (+10% YoY), tickets via Movie Club ~25% of U.S. box office; loyalty >50% of domestic box office Strengthening
Content pipelineQ3 box office highest since pandemic; cadence improving ~115 wide releases in 2025 (~90% of pre-pandemic) and robust 2026 slate; diverse genres; expect some capacity constraints Recovering volume
Capital allocationQ2 de-lever actions: repricing, refi 2032 notes, tender 2026 notes Dividend reinstated; capex ↑ to ~$225M; repay converts with cash; maintain net leverage 2–3x Balanced offense/defense
Cost structure pressuresQ2 utilities/G&A moderated vs prior year Film rental rate ↑; wages/benefits inflation; utilities/other ↑ (cards, gift card commissions, insurance); G&A ↑ (severance, SBC) Mixed headwinds
International/LATAMQ3 outperformance vs industry; strong attendance Q4 international attendance +28% YoY; 19.5% Adjusted EBITDA margin; FX devaluation offsets strength Recovery with FX risk

Management Commentary

  • Strategic highlights: “We delivered worldwide revenue of more than $3 billion with $590 million of adjusted EBITDA and a solid 19.4% adjusted EBITDA margin… We also generated strong free cash flow of $315 million and further refortified our balance sheet.” — Sean Gamble .
  • Demand/format leverage: “PLFs represented 5.5% of our total screens, but accounted for 13.4% of our total box office proceeds… D-BOX motion seats… grew almost 40% year-over-year on a 30% expansion in seat count.” — Sean Gamble .
  • Concession strategy: “We are expecting to continue to grow our domestic concession per cap moderately year-over-year in 2025.” — Melissa Thomas .
  • 2025/2026 slate: “We expect [2025 wide releases] will likely grow to around 115 by year-end… and 2026 is already looking like it will notch another step forward from there.” — Sean Gamble .
  • Dividend and leverage: “Our Board… authorized the reinstatement of an annual cash dividend of $0.32 per share… The reinstatement… underscores the health of our balance sheet.” — Melissa Thomas .

Q&A Highlights

  • Concessions growth drivers: focus on assortment, layout, ease of purchase, targeted pricing, promotions, and merchandise; expecting moderate per-cap growth in 2025 .
  • Content spacing/capacity: 2025 likely more bunching leading to capacity constraints; diverse slate supports attendance despite share tempering .
  • Capital allocation & converts: plan to repay converts’ principal in cash; call spread up to $22.08; mix of buybacks/dividends post-convert depends on valuation, liquidity, dilution .
  • Margin outlook: margin expansion potential with stronger box office, ATP and concession per-cap growth, and initiatives; offsets include rising film rental rates, wage pressures, utilities/R&M .
  • LATAM: region pacing ahead of U.S. in recovery; strong consumer behavior despite macro challenges (e.g., Argentina) .
  • Movie Club impact: membership growth increases frequency and F&B consumption; ~25% of domestic admissions revenue via Movie Club .

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable at the time of request due to SPGI access limits. As a result, explicit beat/miss vs consensus cannot be assessed in this report.

Key Takeaways for Investors

  • Q4 inflection sustained: robust YoY growth across revenue/EPS/EBITDA on strong attendance; operating leverage remains a key driver into a richer 2025 slate .
  • Dividend reinstatement is a positive signal; balance sheet strength (2.2x net leverage, $1.1B cash) and plan to retire converts with cash reduce financial overhangs .
  • Concessions and premium formats are structural margin levers; initiatives and pricing analytics support per-cap growth even as attendance scales .
  • 2025 investment cycle: capex ramps to ~$225M to upgrade circuit and premium offerings; near-term free cash flow will absorb higher cash taxes and R&M .
  • Cost mix headwinds: film rental rate increase and wage/insurance pressures are real; watch quarterly mix and capacity constraints for margin variability .
  • International momentum is strong but FX volatility is a watch item; operational expertise in LATAM aids margin resilience .
  • Tactical: in absence of consensus verification, focus on operational KPIs (attendance, ATP, concession per-cap) and the cadence of releases; dividend and convert repayment are likely key stock narrative catalysts near-term .

Citations: Q4 2024 8-K and EX-99.1 ; Q4 2024 earnings call transcript ; Q3 2024 8-K ; Q2 2024 8-K ; D-BOX press release (format expansion context) .