Fitch: US Movie Exhibitors' Stable Outlook Melds LT Challenges

  Fitch: US Movie Exhibitors' Stable Outlook Melds LT Challenges

Business Wire

NEW YORK -- May 21, 2014

The 2014 film slate will support industry-wide box-office revenues in line
with 2013's $10.9 billion, Fitch Ratings says, with little or no declines in
attendance and flat to modestly higher average ticket prices. Last year's
revenues were a 0.8% increase over the previous year.

In the report, 'An Exclusive Preview: Fitch's 2014 Movie Exhibitor Industry
Report,' Fitch maintains its cautious view on the longer-term prospects for
the industry, which Fitch has held over the past several years. Further, Fitch
believes the 2015 film slate may drive low to mid single-digit box-office
revenue growth, based on the current film slate and expected 2014 performance.

Fitch's 2014 and 2015 expectations incorporate attendance and average ticket
price. Attendance is expected to show flat to low single-digit declines
despite a strong upcoming film slate while average ticket prices are expected
to display low single-digit growth. In addition, Fitch expects low
single-digit increases for concession revenues, driven by increased per-capita
spending, and offset by attendance declines.

The longer-term secular risks of shortening exhibition windows and increased
indirect competition from video on demand (VOD) and other "over the top,"
(OTT) services will continue to contribute to gradual attendance declines.
These risks weigh heavily on exhibitor's Issuer Default Ratings which are in
the 'B' category. These risks are balanced by Fitch's belief that movie
exhibition will continue to be a key promotion window for the movie studios'
biggest and most profitable releases.

'An Exclusive Preview' also provides updated organization charts and portfolio
summaries for AMC Entertainment Inc ('B/Pos'), Cinemark Holdings, Inc. (not
rated) and Regal Entertainment Inc ('B+/Stable'). The report is available at
'www.fitchratings.com'.

Additional information is available on www.fitchratings.com.

The above article originally appeared as a post on the Fitch Wire credit
market commentary page. The original article, which may include hyperlinks to
companies and current ratings, can be accessed at www.fitchratings.com. All
opinions expressed are those of Fitch Ratings.

Applicable Criteria and Related Research: An Exclusive Preview -- Fitch's 2014
Movie Exhibitor Outlook and Analysis

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=734795

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Contact:

Fitch Ratings
Rolando Larrondo, +1 212-908-9189
Senior Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Timothy Lee, +1 312-368-3179
Associate Director
or
Kellie Geressy-Nilsen, +1 212-908-9123
Senior Director
Fitch Wire
Fitch Ratings, Inc.
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New York, NY 10004
or
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brian.bertsch@fitchratings.com
 
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