Cinemark (CNK) The 38th Annual Roth Conference summary

Box office outlook and industry trends

• Domestic box office is up 20% year-over-year, with momentum expected to continue into 2026, driven by a robust and diverse film slate including major family titles and strong action/horror offerings.

• Independent studios are increasing their output, filling gaps and providing diverse content that supports consistent wide releases and consumer appeal.

• Theatrical windows are lengthening, with Universal expanding from 17 to 45 days, reflecting industry recognition of the value of exclusive theatrical runs.

• Netflix is showing a growing appreciation for theatrical distribution, though consistent participation remains to be seen.

• Latin America is showing strong attendance resiliency, with market share up 180 basis points since the pandemic and a favorable 2026 film slate.

Premium experiences and customer engagement

• Post-pandemic, consumers are opting for premium experiences, leading to record revenues in premium formats and concessions in 2025.

• Capital expenditures are being allocated to enhance premium amenities, including XD and D-BOX motion seats, with a goal to make every visit feel premium.

• The Movie Club subscription program now accounts for 30% of box office revenue, with 1.45 million members who show higher frequency and spend.

• New Movie Club features include a Platinum tier, premium screen upgrades, social badges, and early access screenings to deepen engagement.

• Merchandise tied to films is driving both concession sales and viral marketing, amplifying box office performance.

Operational innovation and financial strategy

• AI and machine learning are being used for pricing, showtime optimization, and targeted marketing, with generative AI seen as a future growth driver.

• Margin expansion is targeted through attendance growth, strategic initiatives, and cost management, aiming to return to pre-pandemic levels (excluding prior dividend contributions).

• Family entertainment concepts are being explored as complementary formats, with early learnings from joint ventures and new builds informing long-term strategy.

• Capital allocation focuses on balance sheet strength, growth investments, and returning capital to shareholders through dividends and buybacks.

• A balanced, disciplined approach is maintained to maximize long-term shareholder value and flexibility for future opportunities.