Breaking News

Tweet TWEET

Fitch: 2013 Attendance Challenges Not Enough to Change Outlook for U.S. Movie Exhibitors

  Fitch: 2013 Attendance Challenges Not Enough to Change Outlook for U.S.
  Movie Exhibitors

Business Wire

NEW YORK -- April 9, 2013

The operating outlook for the U.S. movie exhibition industry remains stable,
albeit within the context of expected attendance declines in 2013, according
to Fitch Ratings in a new report.

As Fitch's report, 'An Exclusive Preview: Fitch's 2013 Movie Exhibitor Outlook
and Analysis', states Fitch maintains its cautious view on the longer-term
prospects for the industry over the past several years.

Fitch's 2013 expectations incorporate:

--Attendance declines in the low- to mid-single digits, mainly due to the
strong film slate in 2013 that produced record box office revenues;

--Roughly flat average ticket price, driven by a modest increase in the base
ticket price, partially offset by a lower anticipated mix of premium tickets;

--Flat concession revenue growth despite the aforementioned attendance
declines. Concessions will benefit from increased per capita spending mostly
driven by the increased concession offerings by the major players; and

--Increased acquisition activity as the rollout of digital screens concludes
and studios consider only releasing films in a digital format.

Longer term, Fitch believes revenues and the profitability of movie theaters
could be increasingly challenged by factors that are largely out of
management's control. Among them are quality and quantity of movies from the
studios and increasing indirect competition from other distribution channels
such as video on demand and the Internet. Fitch believes movie exhibition will
continue to be a key promotion window for the movie studios' biggest/most
profitable releases.

'An Exclusive Preview' also provides updated organization charts and portfolio
summaries for AMC Entertainment Inc, Cinemark Holdings, Inc. and Regal
Entertainment Inc. The report is available at 'www.fitchratings.com' under the
following headers:

Sectors >> Corporate Finance >> Corporates >> Report Type >> Topical Research
& Special Reports

Additional information is available 'www.fitchratings.com'.

Applicable Criteria and Related Research An Exclusive Preview (Fitch's 2013
Movie Exhibitor Outlook and Analysis)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=701030

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS.
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK:
HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING
DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S
PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND
METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF
CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL,
COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM
THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER
PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS
OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN
EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER
ON THE FITCH WEBSITE.

Contact:

Fitch Ratings
Shawn Gannon
Associate Director
+1-212-908-0223
Fitch Ratings, Inc., 33 Whitehall Street, New York, NY 10004
or
Rolando Larrondo
Director
+1-212-908-9189
or
Media Relations:
Brian Bertsch, +1-212-908-0549 (New York)
brian.bertsch@fitchratings.com
 
Press spacebar to pause and continue. Press esc to stop.