Movie theater stocks receive a bump after record opening for ‘It’
From Market Watch: “It,” the updated big screen adaptation of Stephen King’s 1980s novel, captivated and terrified audiences this weekend as it reinvigorated a slumping box office.
Pulling in $123.1 million in its opening weekend, “It” set a record for a September debut, far exceeding what Warner Bros. TWX, -0.11% studio execs were hoping for. The film accounted for 80% of the box-office revenue for the weekend’s top 10 films.
Cinema chains have had a rough year, especially during a summer movie season that was the worst in more than a decade.
But in the wake of the record-breaking weekend for “It,” shares of AMC Entertainment Corp. AMC, +3.24% were up close to 8% during intraday trade on Monday, while shares of Regal Entertainment Group RGC, -0.16% and Imax Corp. IMAX, -0.48% were up more than 6%, and Cinemark Holdings Inc. shares CNK, -0.49% were up nearly 6%.
Hollywood analysts and insiders had put a lot of pressure on “It” ahead of its release.
“Yeah, it was nerve wrecking, but we did pull it off,” Warner’s president of domestic distribution, Jeff Goldstein, said. “We blew past everyone’s most presumptuous expectations. The industry really needed this one.”
In the third quarter, box-office revenue is down roughly 19%, compared with the same period last year, which is an improvement of 300 basis points as compared with last weekend, according to MKM Partners analyst Eric Handler.
“Led by the debut from ‘It,’ the stagnant box office experienced a revival which brought consumers back to theaters in droves,” Handler wrote in a note to investors. “We are increasingly optimistic about September’s slate as ‘It’ should have solid carry-over for the next couple of weeks and likely provide a decent bridge leading into the releases of ‘Kingsman’ and ‘The Lego Ninjago Movie’ on Sept. 22.”
Story link: http://www.marketwatch.com/story/movie-theater-stocks-receive-a-bump-after-record-opening-for-it-2017-09-11
ABOUT THEATRE HISTORICAL SOCIETY OF AMERICA: Founded by Ben Hall in 1969, the Theatre Historical Society of America (THS) celebrates, documents and promotes the architectural, cultural and social relevance of America’s historic theatres. Through its preservation of the collections in the American Theatre Architecture Archive, its signature publication Marquee™ and Conclave Theatre Tour, THS increases awareness, appreciation and scholarly study of America’s theatres.
Learn more about historic theatres in the THS American Theatre Architecture Archives and on our website at historictheatres.org