Cinemark Selling Mexican Theaters to Cinemex
Feb 17th 2013 6:15AM
Updated Feb 17th 2013 3:00PM
On Friday, movie-theater operator Cinemark Holdings announced that it has agreed to sell its Cinemark de Mexico subsidiary to Grupo Cinemex and Cadena Mexicana de Exhibicion.
The 31 theaters and 290 screens being sold brought Cinemark $73.7 million in revenues over the past 12 months, and $7.9 million in net income. As such, it represents about 6.7% of Cinemark's total theater count, and 11.3% of its screen count. However, in terms of revenue, the Mexican operation was not performing up to snuff. Revenues from Cinemark's Mexican subsidiary accounted for only 3.1% of the company's total trailing-12-month revenues, and 5% of net profit.
Cinemark did not disclose how much it will collect for sale of the subsidiary.
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