Unidentified Analyst: And then, just a follow-up, maybe taking the more EBITDA margin question from earlier on a different route. I guess I know there’s a lot of uncertainty in terms of what inflation you may do in the coming years, how the film slate may continue to ramp and box-frecover. But given what you saw in the second quarter in terms of margins, do you feel that the current operating structure and cost structure and kind of per cap spend levels can allow margins to get back to prepandemic or above prepanemic levels if the box office fully recovers in the coming years, but attendance continues to lag revenue at the same level it is now?
Melissa Thomas: So I mean, there’s a lot still in flux, so it’s hard to say. But I think maybe said another way, we don’t necessarily believe that we need to attendance to fully recover in order for margins to recover. So that’s going to depend on the factors that we talked about like market share per, all that that you highlighted. But as you saw in the quarter, attendance doesn’t necessarily need to get back to those pre-pandemic levels.
Operator: Our next questions come from the line of Chad Beynon [ph] with Macquarie.
Aaron Lee: This is Aaron on for Chad. With regard to your premium format screens, is there a level of penetration you’d like to get to over the medium term? And how does that rank among your priorities versus some of the other ROI-generating opportunities you mentioned?
Sean Gamble: Ari, thanks for joining. Look, we’ve been very pleased with what we’re seeing with premium consumption across the board, not just our screens, but our D-BOX motion seats, our food and beverage, our responsiveness of audiences to recliner seats. I mean it really cuts across all the different premium offerings. As far as priorities, it’s an area that certainly is ranking high on our ROI priorities because the returns have been really strong. I’d say, target-wise, specific to the screens and auditoriums; one of the governors on that is just the size of the auditoriums across our existing fleet. So if we’re adding new theaters that provides a lot of flexibility. When we’re talking about existing theaters, we want to make sure it’s the right scale of experience, right?
You need to have a large enough auditorium for the overall experience to be appropriate. So we don’t undermine that product. So we do see a sustained opportunity there to a certain degree for certain second XDs in marketplaces here and there. But I would say, in fact, it’s a piece of the the overall prioritization effort we’re doing with regard to our CapEx, like there’s a number of other things that are really positive. So it’s high on the list. The degree of which we’re doing that really is balanced with a range of other things. And then like I mentioned, just the the types of auditoriums and the size of terms that we have available to us at this point.
Aaron Lee: Okay, great. That’s helpful. And then can you help us just understand the inflation picture in Latin America and how that’s affecting the consumer. It’s good to see the international recovery continuing, but just wondering how that’s trending currently.
Sean Gamble: Sure. It’s interesting, as I kind of was alluding to before, the high inflation is something that most of these markets are very accustomed to because it’s not unique to retail. It’s not unique to our industry. It really cuts across everything in these markets. And — what they’ve become more accustomed to there than here is pricing growing at a comparable level to inflation. So typically, what happens is wage rates goes up, cost of utilities goes up, cost of groceries go up and people just take the pricing of goods and services up at a similar level, and that’s how things go. So — and the consumers accept that. They expect it because it’s — like I said, it’s almost just the way many of these markets operate. Here in the U.S., it’s a little bit of a different dynamic because it’s — we’re not accustomed to higher levels of inflation.
So you got to be a little bit more careful on the aggressiveness of pricing just to try to match some of the cost escalation that’s been there because there can be a sticker shock that happens here that doesn’t happen there. So I would say, again, LatAm, it’s more of the norm, and it’s something that really hasn’t been — hasn’t been a near-term or newer issue that they’re contending with.
Aaron Lee: Got it. Appreciate the color, and congrats on the quarter.
Operator: There are no further questions at this time. I would now like to hand the floor back over to Sean Game for any closing comments.
Sean Gamble: Thank you, and thanks, everyone, for joining us again this morning. In closing, I’d just like to reiterate our optimism about the future of the Atrovexhibition and our company long-term indicators regarding consumer interest in theatrical movie going and film volumes remained positive, and Cinemark maintains a highly advantaged position to capitalize on our industry’s continued recovery through our ongoing strategic initiatives and the many actions that we’ve already taken to enhance the experience as we provide our guests, advance our operating capabilities and strengthen our financial position. So thank you, and we look forward to speaking with you again following our third quarter results.
Operator: Thank you. This does conclude today’s teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy your weekend.
