Regal Profit Plunges 70 Percent to $4.1 Million
People aren't seeing as many movies as they used to, but, when they do go theaters, at least they're spending more at the consession stand.
That's the word, at least, from Regal Entertainment Group, which said Monday that fourth-quarter net income fell 70 percent to $4.1 million as revenue dipped 7 percent to $614 million.
Concession sales were off 3 percent to $159 million while admissions dropped 10 percent to $414 million. The average moviegoer spent 5.4 percent more at the concession stand than they did a year ago.
"The fourth quarter of 2011 presented the industry with a challenging box office environment," said CEO Amy Miles. "Despite over $280 million of revenue generated by The Twilight Saga: Breaking Dawn -- Part 1 and a slight uptick in the box office during the historically busy week between Christmas and New Year's, industry box office generally underperformed expecations and declined by approximately 7 percent."
Miles also praised the early results of Regal's joint-venture distribution business, Open Road Films, which has released Killer Elite and The Grey. "We expect both films to generate a profit as they move through the downstream distribution channels," she said.
Shares of Regal advanced 4 percent Monday to $13.05 and were up another penny after the closing bell.