CinemaOne narrows losses, prepares for blockbuster summer

CINEMAONE Ltd has trimmed its net losses for the six months ending March 31, with the company reportedly focusing on tighter cost management amid a cautious start to the global cinema exhibition year.

The entertainment group reported a net loss of $2 million, an improvement from the $2.7 million loss recorded in the corresponding period of 2024.

Revenue for the period slipped by seven per cent to $8.6 million, compared to $9.2 million a year earlier.

Chairman Brian Jahra reported that gross profit, however, held steady at $5.7 million, owing to disciplined procurement practices and efforts to contain operating expenses.

Operating profit moved into positive territory at $.2 million, reversing a $.1 million operating loss last year.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by nine per cent to $3.4 million.

The company’s performance largely mirrored the wider industry’s mixed fortunes for the early part of the year.

Jahra said tepid demand in North America and other international markets slowed overall growth, with the US and Canada market falling 13 per cent and the international market, excluding China, down seven per cent compared to 2024.

“Despite the slow start to the new year, some of which was expected due to the lingering impact of the Hollywood strikes, the recovery trajectory resumed in April with the first blockbuster of 2025 in The Minecraft Movie and the Ryan Coogler breakout hit Sinners.”

CinemaOne’s management acknowledged the challenging climate but expressed confidence in the market’s trajectory heading into the mid-year blockbuster season.

Jahra said the company was actively streamlining operations to navigate near-term pressures and position itself for the anticipated upswing in cinema attendance.

“The CINE1 Group is continuing to enhance operational efficiencies earmarked to reduce costs as the company positions itself for what the industry expects will be a robust summer blockbuster period,” Jahra said.

He said that, for the first time in several years, the holiday season – which in the film exhibition market typically begins in May – would benefit from a packed schedule of major studio releases. Among the high-profile titles set to reach local screens are Mission Impossible: Dead Reckoning, John Wick: Ballerina, Jurassic World Rebirth, Disney’s Lilo and Stitch and Fantastic Four, alongside Warner Bros’ highly anticipated Superman reboot.

The film slate arrives after a slow start to 2025, which saw few breakout titles. Market momentum returned in April with the debut of The Minecraft Movie and Ryan Coogler’s Sinners, both of which posted strong international numbers and helped reignite audience interest ahead of the summer cycle.

The group’s total assets stood at $127.8 million at the end of March, slightly higher than the $127.6 million recorded at the end of September.

Total equity declined to $15.6 million, down from $17.6 million six months earlier, primarily owing to accumulated losses and a dividend-in-kind distribution.

Looking ahead, the company said it would maintain a focus on operational discipline while positioning itself to capitalise on the expected surge in cinema attendance driven by a packed line-up of major studio blockbusters.

CinemaOne did not provide individual title performance figures for its screens during the period. However, its financial statements suggest that, while revenue dipped, effective cost controls allowed the company to contain losses and improve operational profitability.

The company said it intends to build on these gains as the global box office moves further toward recovery.