This week, exhibition giants AMC and Cinemark reported positive second-quarter results, in marked contrast to the tumultuous news coming out of studios and streaming companies. The success of theatrical releases led by TOP GUN: MAVERICK, JURASSIC WORLD: DOMINION and DOCTOR STRANGE IN THE MULTIVERSE OF MADNESS helped exhibitors narrow losses as they turn the page on the pandemic era.
AMC reported a quarterly loss of $121.6M, while Cinemark’s was $73.4M. However, these numbers were weighed down by financial carryovers from the pandemic fact. In fact, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for both companies showed a profit for the quarter.
Cinemark CEO Sean Gamble explained, “Continued improvement in consumer sentiment, as well as a more consistent release cadence of compelling new films with broad consumer appeal and an exclusive theatrical window, yielded the highest quarterly box office since the inception of COVID-19.”
He also pointed out that the U.S. box office has increased during three of the last four recessions, making the case that moviegoing is recession-proof. However, the thin slate of studio releases in August and September has caused exhibitors to expect a decline in Q3 earnings, before a boon in revenues from major releases expected in the fourth quarter and throughout 2023.