Texas Theater Chain Studio Movie Grill Credits MoviePass For Keeping Attendance Up

Helios and Matheson Analytics Inc HMNY’s MoviePass caught an endorsement from a national theater chain Thursday.

Studio Movie Grill attributed recent comps growth and rises in off-peak and smaller-film attendance in part to MoviePass, with whom it developed a strategic relationship in December 2016.

"MoviePass has enhanced our ability to open hearts and minds by providing a no-risk vehicle for movie goers to sample movies they might not otherwise see," Brian Schultz, founder and CEO of Studio Movie Grill, said in a press release. “SMG was amazed to learn that in some cases, as with Lady Bird, MoviePass generated a double digit percentage of total attendance. We are in the business of creating the habit of movie going and we are excited to be an early adopter of MoviePass.”

Of Course Theaters Like It

Loop Capital managing director David Miller said it’s unsurprising that exhibitionists like MoviePass.

“MoviePass offers unlimited movie-going at all three of our covered exhibitor names and all three management teams are more than happy to accept the service because MoviePass has to remit the full ticket value back to the exhibitor,” Miller wrote in a Wednesday note.

AMC Entertainment Holdings Inc AMC recently reported average per-ticket revenue from MoviePass at $11.88 against in-house ticket sales of $9.80.

But The Markets Don’t

The program has had less success enticing the Street, though. Helios and Matheson shares have fallen 49 percent since the end of November and 76.5 percent since striking new all-time highs in October.

The stock declined Tuesday on fresh competitive headwinds from Cinemark Holdings, Inc. CNK’s new in-house program.

“Unlike MoviePass, which we believe is not sustainable in offering unlimited moviegoing at $6.95/month, this mechanism is priced to actually produce operating income and not be a loss leader,” Miller wrote.

HMNY closed Thursday at $8.30, up about 7 percent.

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