News Column

Fitch: US Movie Exhibitors' Stable Outlook Melds LT Challenges

May 21, 2014



NEW YORK--(BUSINESS WIRE)-- 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

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.



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.

33 Whitehall Street

New York, NY 10004

or

Media Relations:

Brian Bertsch, +1 212-908-0549

brian.bertsch@fitchratings.com

Source: Fitch Ratings


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