3D business boosts Carmike, RealD revenue
Represents over 26% of Carmike's total b.o. for 2QNEW YORK -- Two earnings reports Monday afternoon once again put the spotlight on the 3D film business.
Film theater operator Carmike Cinemas said 3D was one of the bright spots in its second-quarter results. "Consumer preference for 3D was strong, representing over 26% of Carmike's total boxoffice for the quarter," said president and CEO David Passman.
And recently-public RealD Inc., a licensor of 3D technologies, swung to a profit in its first fiscal quarter on a 152% revenue increase. The results "highlight the power and scalability of our 3D technology licensing model," said chairman and CEO Michael Lewis. He predicted that consumers will also seek out RealD 3D technology when they buy consumer electronics products in the future.
Carmike swung to a second-quarter loss of $6.5 million from a year-ago profit of $2.8 million as revenue declined 4% to $127.5 million on weaker boxoffice results, while interest expense rose.
"The second quarter was marred by an industry-wide boxoffice decline," Passman said. "While we take no pleasure in experiencing year-over-year boxoffice declines, we are encouraged that Carmike's per screen attendance and admissions fared at or better than industry averages."
Average spend per patron was $10.36 per visit, up 6.5% year-over-year.
Average admissions rose 6% to $6.89 thanks to 3D and average concessions and other revenue rose 7.4% to $3.47.
RealD swung to a quarterly profit of $2.9 million after a year-ago loss of $9.8 million as revenue hit $64.5 million.
Before the earnings report, RealD shares closed up 7.3% at $18.24 after hitting a new high of $18.50 earlier in the day. They rose beyond that in after-hours trading.
Carmike shares before the earnings closed up 3.35 at $7.55.