Will Minecraft Movie save Cinemark Holdings (CNK)?

It’s no secret Hollywood has had a rough run, first sidelined by the pandemic, then stalled again by a six-month strike in 2023. Now, movie theaters are in for another blow.

Cinemark Holdings (CNK), one of the world’s largest theater chains, reported a 6.6% drop in revenue last quarter to $540.7 million, down from $579.2 million a year earlier.

Ticket sales dropped nearly 9% to $264.1 million, while snack and drink sales fell 6.2% to $210.4 million. Fewer people showed up at theaters, too, with attendance down 7.8% to 36.6 million.

The downturn mirrors broader industry trends. Total North American box office sales came in at about $1.5 billion in the first quarter — down 12% from the same period in 2024.

On the latest earnings call, Cinemark CEO Sean Gamble said the company remains “highly optimistic” about a recovery, but acknowledged that the Hollywood work stoppage continues to weigh on results.

“As expected, lingering headwinds from the 2023 strikes — which caused a prolonged production halt — are still affecting the first quarter of 2025,” he said.

Gamble noted that some major releases originally slated for Q1 were delayed, while several of the films that did hit theaters underperformed.

“This decline can also be attributed to multiple films that didn't fully resonate with audiences and trailed expectations,” he said.

Still, Gamble has high hopes for the massive $301 million global opening of A Minecraft Movie, which kicked off the second quarter and could help boost secon-quarter results.

Trump threatens tariffs on foreign-made films

Meanwhile, President Trump on Sunday threatened to impose 100% tariffs on movies produced overseas, claiming foreign studios are “stealing the movies” from Hollywood.

“A concerted effort by other Nations,” Trump said, “and therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda.”

It’s unclear how such a tariff would be implemented — and the administration has yet to provide any details.

The threat follows a 22% drop in film production in Los Angeles in the first quarter, a worrying trend for an industry still struggling to rehire crews and bring projects back online.

Many studios have shifted production to other states or countries offering better tax incentives, raising long-term concerns over Hollywood’s ability to bounce back in its traditional home base.