RealD Records a Quarterly Loss and Falling Revenue
"2D films generated an outsized share of global box-office receipts," laments CEO Michael Lewis.
RealD reported declining revenue and earnings in the latest quarter as customers opted for old-fashioned, two-dimensional films in larger numbers than expected.
RealD said Wednesday that revenue fell 4 percent to $46.9 million and that it lost $4.2 million in the quarter, reversing a $2.8 million profit the year earlier.
RealD recently changed its quarterly reporting periods, so the reversal in fortune came despite an additional 10 days in the most recent quarter compared with the same quarter last year.
"2D films generated an outsized share of global box-office receipts during our third fiscal quarter, which limited our financial results for the quarter," RealD CEO Michael Lewis said.
The box office generated on RealD-enabled screens during the quarter was $643 million, up from $532 million last year. The increase was due to their being nine 3D films this time compared with eight last year, as well as a 13 percent increase in the number of screens, now at 22,200 worldwide and growing. On Wednesday, for example, RealD said Russian exhibitors Karo Film and Kinomax will equip up to a combined 300 RealD systems across their circuits.
Films in the current quarter for RealD are The Texas Chainsaw Massacre 3D, which opened Jan. 4, and the upcoming Hansel and Gretel: Witch Hunters, Escape from Planet Earth, Jack the Giant Slayer, Oz: The Great and Powerful, The Croods and GI Joe: Retaliation.
Shares of RealD were up 2 percent to $11.65 Wednesday and did not trade after the closing bell.