Regal Entertainment Group Boosts Fourth-Quarter Earnings
The movie exhibitor benefited from a healthy attendance during the holiday season.
Regal Entertainment Group upped its revenue by 8 percent, to $799 million, in the fourth financial quarter and also reported nearly twice as much net income from the same financial quarter a year ago.
The $46 million in net income was on par with analyst expectations and comes after the motion picture exhibitor announced last month that it had decided against a sale of the company upon a board review.
Despite a soft box office in 2014 and some late-season worries connected to the release of Sony's The Interview, the latter months were kind to Regal, which reported 58.2 million ticket sales, compared to 54.2 million in the fourth quarter of 2013.
Revenue from admissions went up slightly by $30 million to $531 million overall as the average ticket price was down 14 cents to $9.12. Regal is also squeezing more from concessions as the average consumer now pays $3.82 on a trip to the movies compared to $3.56 a year ago.
The cost of film rental and advertising is also holding steady for Regal.
“In 2014, we demonstrated our ability to deliver value to our shareholders despite a challenging box-office environment as our strategic and operational execution helped generate total shareholder return of over 20 percent for the third consecutive year,” stated Regal CEO Amy Miles. “Looking ahead, we are encouraged by the industry box-office results for the last several weeks and optimistic about the potential for box-office success throughout 2015.”