Cinemark (CNK) Wells Fargo 8th Annual TMT Summit summary

Industry outlook and film release cadence

• Film volume is expected to normalize by 2026, with 2025 releases projected between 2023 and pre-pandemic levels.

• Quality of releases, not just volume, is key to box office performance.

• New entrants like Amazon are expanding theatrical slates, while Apple remains in a test phase.

• Optimism is driven by sustained consumer enthusiasm and studio production plans.

• Non-traditional titles are contributing to growth.

Pricing, premiumization, and consumer trends

• Average ticket prices are expected to grow modestly, with data-driven pricing strategies.

• Premium large format (PLF) screens, such as XD, represent 5% of screens but 13% of box office.

• D-BOX motion seats and recliners are outperforming, with D-BOX box office up 75% since 2019.

• Consumers are trading up to premium amenities and spending more on food and beverage.

Concession and per cap growth

• Domestic concession per caps are up over 40% since 2019, driven mainly by higher incidence rates.

• Initiatives include queue line investments, mobile ordering, self-serve, third-party delivery, and expanded hot food.

• Focus remains on balancing price and incidence rates to maximize value and monetization.