Regal Entertainment Falls Short of Expectations in Second Quarter

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Regal CEO Amy Miles

"With year-to-date industry box office results slightly ahead of last year's record-setting pace and an exciting film slate in the back half of the year, we remain optimistic regarding potential for box office success in 2016," said CEO Amy Miles.

Regal Entertainment Group, the movie theater giant, posted quarterly revenue and profit on Tuesday that was slightly below the expectations of analysts, with the CEO blaming the lackluster results on a "challenging" environment for the box office.

Regal said revenue was $786 million in the most recent quarter while Wall Street expected something closer to $789 million. Adjusted earnings were 23 cents per share, a penny shy of expectations.

Both admissions revenue and concessions revenue fell in the second quarter compared to the same period a year earlier.

At the end of the quarter, Regal had 564 theaters and 7,307 screens. More than 51.2 million people attended a movie at a Regal theater during the quarter, paying on average $9.87 per ticket. Each patron spent about $4.60 at the concession stand, up from $4.19 a year ago.

"In a challenging second quarter box office environment, we were pleased that our ongoing seating and concession initiatives had a positive impact on our operating metrics, including new record highs in both average ticket price and concession sales per patron," said CEO Amy Miles.

Shares of Regal fell 2 percent to $23.68 on Tuesday and did not trade after the closing bell.

Some of the upcoming movies the exhibition industry is excited about include Suicide SquadFantastic Beasts and Where to Find Them, Doctor Strange, Rogue One: A Star Wars Story and Passengers.

"With year-to-date industry box office results slightly ahead of last year's record-setting pace and an exciting film slate in the back half of the year, we remain optimistic regarding potential for box office success in 2016," said Miles.

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