Regal Cinemas Posts Mixed Results as Ticket Prices Climb
Management said the lower numbers this year were due to a "challenging box-office environment."
Shares of Regal Entertainment, beaten up all year, soared 4 percent higher on Tuesday after the theater chain reported declining financial metrics for the third quarter, but still managed to make more profit than Wall Street had anticipated.
Regal said it earned $11.4 million in the quarter, or 7 cents per share, which was 3 cents better than analysts were predicting. Revenue, though, was $716 million, about $6 million less than analysts had modeled.
Regal shares had been down 21 percent so far this year, but they rose both during the regular session and in after-hours trading.
A year earlier in the same quarter, Regal's earnings were 27 cents a share and revenue was $812 million, and management said lower numbers this year were due to a "challenging box-office environment."
"Looking ahead, we are optimistic regarding the potential for box-office success during the upcoming holiday season and throughout 2018," said Regal CEO Amy Miles.
Regal said it ended the quarter with 7,315 screens in 561 theaters. The average price paid for a ticket was $10.19, up from $9.64 last year, and each customer spent an average of $4.76 at the concession stand, up from $4.40.