Debt costs weigh on Cinemark 2Q profit

Cinemark 2Q profit drops 61 percent as debt costs offset higher ticket, food and drink sales

Associated Press

PLANO, Texas (AP) -- Movie theater owner Cinemark Holdings Inc. said Tuesday its second-quarter net income dropped 61 percent, as expenses related to debt outweighed higher ticket and concession sales.

Cinemark earned $20.3 million, or 18 cents per share, down from $51.6 million, or 45 cents per share, in the same quarter of 2012. The recent quarter's results included debt-retirement charges of $72.3 million, while the year-ago quarter included none.

Revenue rose 12 percent, to $725.6 million from $649.6 million, as ticket prices, the number of moviegoers and food and drinks sales climbed.

The company's average ticket price rose 4 percent, while spending at the concession stand per moviegoer increased 7 percent. Attendance rose 7 percent to 73.4 million people.

Shares rose 26 cents to $30.03 in morning trading.

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