Regal Cinemas Posts Falling Financial Results While Prices Rise at Movie Theaters
The theater chain reported revenues down over $20 million from the same quarter last year despite higher ticket prices.
Regal Entertainment Group, which owns 66 theaters primarily in the U.S., reported falling profit and revenue in the second quarter, a timeframe when the box office was off about 3.5 percent compared to the same quarter a year ago.
Regal said revenue came in at $764 million, compared to $786 million last year, while net income fell to $24 million from $34 million a year earlier. Earnings per share were 15 cents, down from 21 cents, and a couple pennies shy of what analysts were expecting.
Investors didn't mind the mild numbers, though, and bid the stock a penny higher after the closing bell and after shares advanced 2 percent to $20.20 during the regular session. Also on Wednesday, Regal declared a cash dividend of 22 cents per share.
Regal CEO Amy Miles said year-to-date box-office revenue is in line with last year's total with "an exciting film slate yet to come in the back half of the year."
The average price of a ticket rose to $10.14 from $9.87, and each patron spent an average $4.88 at the concession stand, up from $4.60 last year.
Despite rising prices, admissions revenue in the quarter dropped to $481 million from $506 million last year, while concessions revenue was $231 million, down from $236 million.
Regal said 44.4 million people attended a movie at its theaters during the quarter, down from 51.2 million.
Regal said it had 7,379 movie screens at the end of the second quarter, up from 7,307 screens a year ago.