Movie Theater Rebound Is Real, But So Is Film Shortage, Cinemark CEO Sean Gamble Says After Circuit Posts Strong Q1 Results
deadline.comCinemark CEO Sean Gamble says a relative shortfall of new films will likely be the biggest headwind his company faces this year.“Many switched into 2023” for Covid reasons, Gamble explained during the company’s first quarter earnings call, and there is a larger reconsideration of the theatrical window as major studios get their sea legs in streaming. “We expect that to be a challenge for the entirety of this year – we don’t see those gaps filling in.”The No.
3 U.S. exhibitor reported first-quarter results ahead of Wall Street’s expectations. Total revenue came in at $460.5 million, compared with $114.4 million in the year-earlier quarter.
Analysts’ consensus estimate was for $447 million.Losses narrowed to 62 cents per share from $1.75 a year ago, beating estimates by a penny.Gamble said he expects Cinemark to reach a “normalized level” of box office revenue by 2024.
By that point, he predicted, Covid complications will have dissipated, and “streaming platforms will be in a much more mature place. … That’s when the pendulum shifts.”Asked about whether streaming services might contribute more theatrical releases, which would compensate for studios pulling back or rerouting films to streaming, Gamble said “definitely the potential is there.
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