Regal Revenue Slumps

The big theater chain gets hit by a weak box-office performance out of Hollywood.
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Big theater chain

Regal Entertainment

(RGC)

matched estimates Thursday even as revenue fell because of weak box-office numbers.

The Tennessee-based movie exhibitor said earnings fell to $26.4 million, or 19 cents a share, from the year-ago adjusted profit of $53 million, or 37 cents a share. The year-ago figures exclude a big debt-extinguishment charge. Revenue fell 4.5% to $643 million.

Analysts surveyed by Thomson First Call had expected earnings of 19 cents a share on $634 million in revenue.

Regal also declared a regular quarterly dividend of 30 cents, payable Sept. 16 to holders of record Sept. 8.

"During a quarter of negative box-office comparisons, our accretive acquisitions of Signature Theatres and other theatres coupled with continued growth in revenue generated by the activities of the National CineMedia venture, produced incremental revenues and free cash flow allowing the Company to partially offset a disappointing second quarter box office," said Regal Entertainment Group CEO Mike Campbell.

Regal Entertainment opened the day's trading session at $18.41.