February 17, 2013
On Friday, movie-theater operator Cinemark Holdings (NYSE: CNK ) 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.