Summer Box Office Slump Hits Regal in Q2 Earnings

Movie theater company’s quarter in line with Wall Street expectations

Last Updated: July 26, 2016 @ 3:20 PM

Regal Entertainment Group’s second-quarter results reflect the state of the sluggish summer box office, though the company’s numbers were in line with Wall Street expectations.

Regal reported a revenue of $785.9 million for the second quarter ending on June 30. That’s down from $862.8 million during the same period a year prior.

The Knoxville, Tenn., movie theater company had a Q2 profit of $33.5 million, which included a $900,000 debt payoff. Second quarter profits were down by a whopping $20 million from last year when Q2 profits were reported at $53.4 million.

Earnings per share were 21 cents compared to 34 cents a year ago at this time. Adjusted earnings per share came in at 23 cents, just below predictions. On average, analysts expected a per-share profit of 24 cents on a revenue of $794.7 million.

“In a challenging second quarter box office environment, we were pleased that our ongoing seating and concession initiatives had a positive impact on our operating metrics including new record highs in both average ticket price and concession sales per patron,” said Amy Miles, CEO of Regal Entertainment Group, on Tuesday.

“With year-to-date industry box office results slightly ahead of last year’s record setting pace and an exciting film slate in the back half of the year, we remain optimistic regarding the potential for box office success in 2016,” she added in a statement.

Regal shares dropped just 1.54 percent to $23.68 in after hours trading. Regal’s stock has risen more than 26 percent this year.