Brochure - Cinemex

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THE BEST CINEMA EXPERIENCE ON BOTH SIDES OF THE BORDER

THE WAY

TO ENJOY OF THE BORDER

a film on both sides

Being a leading movie theater chain in Mexico is not enough for CINEMEX, as its CMX operation is poised to keep growing in the USA

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INEMEX is the sixth-largest cinema chain in the world with more than 300 locations projecting into 2,650 screens and operating with 12,000 employees. The company was created in Mexico in 1993 and first opened its multiplex cinemas in August 1995. Fast-forward to today, CINEMEX holds 42% of movie theatres in the country.

To offer some context, CINEMEX’s opening was not only the kick-start for the transformation of the movie-going experience in Mexico, but also the push the established competition needed to raise its own standards into offering clean, comfortable movie theatres and limiting

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April 2018

ticket sales to each theatre’s seating capacity. To sum it all up, CINEMEX’s initial impact dragged the middle class (and beyond) from their pay TV and VHS-renting coziness into cinemas they actually enjoy attending, without any aspect of what were the customary complaints from moviegoers during a good part of the 1970s and 1980s.

CINEMEX was created by Miguel Ángel Dávila, Adolfo Fastlicht and Mathew Heyman, back when the trio attended an MBA program at

Harvard. In mid-2002, CINEMEX was sold to Canada’s ONEX Corp. and Oaktree Capital Mgmt.

Two years later, the company was acquired by The Carlyle Group México, Bain Capital and Spectrum Equity Investors.

Finally, in late 2008, CINEMEX went back to a Mexican ownership after being sold to Grupo México’s entertainment division, property of Germán Larrea.

The company’s accolades include the ‘International Exhibitor

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of the Year’ award at the Show East Annual Convention in 2013.

Steps outside the box Besides imparting standards into providing a complete, joyful experience for moviegoers, CINEMEX was the first multiplex chain in Mexico to launch loyalty programs, advance ticket purchasing and reservations (via telephone, and on its website and apps, afterwards) and other innovative marketing resources.

It also became the first cinema chain to project non-cinema events such as UFC fights and even UEFA Champions’ League matches as well as NFL football and special art events.

Besides hosting 3D

projections in a number of their theaters, CINEMEX also offers different environments for moviegoers, such as: • CINEMEX Premium, with softer, wider, numbered seats as well as waiter service.

• CINEMEXtremo theaters, furnished with Dolby Atmos 24-ch surround sound.

• CINEMEX4D, 3D cinemas with X4D Motion EFX seats.

• CINEMEX Platino theatres boast comfortable, reclining seats and offers select drinks from the bar as well as gourmet snacks.

Strategic acquisitions After years of organic growth, CINEMEX acquired Cinemas Lumiere (a 14-location chain)

12,000

Number of Employees at CINEMEX (in USA: CMX)

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US

$500 Million Annual Revenue at

CINEMEX (in USA: CMX)

in 2012. Previously, the entertainment division of Grupo México had acquired Monterreybased MMCinemas (in 2008), before acquiring CINEMEX. But the company’s most important acquisition took place during 2013 by acquiring the entire Mexican operation of the CineMark chain, which had a less than 10% share of movie theatres in the country (290 theatres distributed through 30 locations), but still boosted CINEMEX’s presence in key markets where it lacked any presence at all. The CineMark México chain was shut down during 2014 and most of its theatres have been both rebranded and equipped to offer CINEMEX’s cutting-edge projection and audio

technology, as well as the diverse fore-mentioned atmospheres.

Personnel was rapidly added to boost CINEMEX’S know-how, standards and company culture.

A year before the acquisition became approved by COFECE (Federal Commission on Economic Competition), CineMark México earned US$73.7mn in revenue.

After the acquisition, CineMark focused on growing their business in the neighboring Central America and South America markets.

CINEMEX also focused on growth... in a different direction, though.

The ongoing venture abroad Last April, CINEMEX opened its first theater in the USA through subsidiary CMX. Venturing into

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the USA is not easy, considering the fierce competition not only from rival movie theatre chains but from other entertainment options, including stay-at-home movie streaming. Nevertheless, CMX credentials share CINEMEX’s innovative features and stateof-the-art technology, offering moviegoers in the States a new cinema experience with comfortable seats, high end décor, gourmet dining options, bartenders

offering a fine wine selection and cocktails from exclusive recipes all in all, a different and pleasant experience gathering rave reviews.

Miami’s Brickell City Centre is the cornerstone for CINEMEX’s first venture abroad, and upcoming openings include locations such as Closter Plaza (Closter, New Jersey), Old Orchard (Skokie, Illinois), the Mall of America (Bloomington, Minnesota), Cineplex 62nd and 1st (Manhattan, New York), Gulfstream

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(Miami, Florida), American Dream (East Rutherford, New Jersey), The Shoppes (Middletown, New Jersey), Wrigleyville (Chicago, Illinois) and Wheeling Town Center (Wheeling, Illinois).

Before 2017 comes to an end, CMX will be taking over four new locations also in the States. The

company is already making an impact on patrons at Brickell City Centre, and it may not take that long before rival theatre chains turn its heads toward the newcomers from south of the border, and add a tweak or two to their current operation just to keep up the pace.

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AV. SANTA FE 48. PISO 12, COLONIA CRUZ BLANCA, MEXICO CDMX 05349 WWW.CMXCINEMAS.COM