Below are my key takeaways from the Regal Entertainment Group Q2 2016 Earnings Call on July 26:
Year to date industry box office results were slightly ahead of last year’s record setting pace (thanks to Avengers: Age of Ultron and Jurassic World), but saw a challenging Q2 due to underperforming movies (no thanks to Independence Day: Resurgence and Teenage Mutant Ninja Turtles: Out of the Shadows). Seating and concession initiatives had a positive impact on results. Had record highs in avg. ticket price and avg. concession sale.
Attendance dropped 13.2% YoY to 51MM.
Overall avg. ticket price was up 2.6% YoY to $9.87. IMAX was +1.0% YoY to $16.36, 3D +2.5% to $12.88 and 2D +4% to $9.21. Ticket prices at recliner installed theaters up 8%.
Avg. concession per patron was up 9.8% to $4.60 YoY.
Saw a decline in premium business – over 20% came from large format and 3D screens vs. last year was over 24%.
Last year they partnered with Atom Tickets to allow patrons to order tickets and concessions via their phone, along with a social component to invite friends to join them. By end of September 100% of theaters will be fully integrated.
|Financials (In millions)||Q2 2016||Q2 2015||% Diff|
|– Other Op Rev||$45||$47||-4.1%|
|Film Rental Costs||$279||$315||-11.4%|
|Other Key Metrics||Q2 2016||Q2 2015||% Diff|
|# of Theaters||564||569||-0.9%|
|# of Screens||7,307||7,324||-0.2%|
|Avg. Ticket Price||$9.87||$9.62||2.6%|
List of Key Properties:
- Regal Cinemas
- Edward Theaters
- United Artists Theaters
- 2,500-3,000 US screens for potential acquisition, but will be patient on any deals
- Not focused on international right now
- Upcoming slate of movies look more promising than first half
- For future investments, see best ROI in recliner stadium seating
Links to Company Website:
Please comment below if there are data points from Regal Entertainment Group you’d like me to include in their next Earnings Call Summary.