Regal Entertainment theater chain reports 1st-quarter results in line with estimates

Regal theater chain reports in-line 1Q results

KNOXVILLE, Tenn. — Regal Entertainment Group, the nation’s largest movie theater chain, said Thursday that its first-quarter profit fell 23 percent as higher costs offset revenue and attendance growth.

Net profit in the three months ended April 1 declined to $16.5 million, or 11 cents per share, from $21.3 million, or 14 cents per share, in the comparable period a year earlier.

Excluding one-time charges, adjusted earnings came to 16 cents per share, matching the expectation of analysts polled by Thomson Reuters.

Revenue grew 8 percent to $720 million from $666 million, coming in ahead of analysts’ $711 million forecast.

The company said attendance rose to 58.6 million from 58.2 million a year ago. Patrons spent on average $8.64 per ticket, up from $7.90, and $3.16 each on concession fare such as popcorn, up from $3.08 a year earlier. But rising film rental, advertising and other operating costs ate away at the revenue growth.

The number of theaters Regal operated fell to 545 from 549 a year earlier, while its screen count fell to 6,739 from 6,773.

Chief Executive Amy Miles said the company is looking forward to completing a major round of financing that will allow it to outfit more screens with 3-D technology this year. Such movies, like “Avatar,” command higher ticket prices and are giving a lift to the movie industry, which is suffering from a decline in DVD sales.

Shares gained 13 cents to close at $17.54 before the announcement, and rose 2 cents after-hours.