Carmike Cinemas Reports Increased Revenue Despite Industry Box Office Decline
Carmike Cinemas reported an adjusted net loss of $6.7 million in the second quarter, slightly better than the $8.6 million loss the theatrical exhibitor reported for the same quarter the previous year. In announcing the earnings, the company said it was pleased with outperforming industry metrics for the fifth consecutive quarter.
The company also reported $136.3 million in operating revenue, a 3.7 percent rise from $131.5 million the previous year. It came on the strength of a 2.7 percent rise over the corresponding quarter last year in admission revenue.
In announcing the results, the company highlighted how the cost of going to the movies is rising. Per patron spending has increased 6.9 percent.
Carmike says that enhancing concession revenue has been a priority. Revenues from concessions rose 5.5 percent over the previous year's results.
Theater-goers are also spending more on tickets. The average admission price rose 6 percent to $6.91, largely the result of an increase in premium tickets sold, the company said.
Carmike Cinemas' president and CEO David Passman said the revenue gains "compares quite favorably to a reported industry box office revenue decline of over one percent."
The company also acknowledged the shooting in an Aurora, Colorado theater that took the lives of 12 people and left dozens of others injured. The shooting has been a personal tragedy for many of the victims, but has also generated discussion about business issues including box office performance and safety issues.
"Our thoughts and prayers are with everyone impacted by this senseless, random act of violence," said Passman. "We regularly monitor and review our safety procedures to ensure that our patrons continue to have a safe and enjoyable experience."