November 15, 2018
MoviePass parent Helios and Matheson Analytics Nov. 15 disclosed that subscribers of its fiscally-challenged theatrical ticket service consumed 0.77 movies per month in the third quarter (ended Sept. 30) compared to 2.2 movies in April.
The 65% usage drop is noteworthy in that it underscores management’s efforts to reduce monthly overhead costs related to reimbursing exhibitors full ticket price every subscriber screening.
Key to MoviePass’ survival is reducing the number of subscribers screenings — not subscribers. HMNY didn’t disclose MoviePass subscriber numbers, which topped 3 million before the service began implementing significant restrictions to the $9.95 monthly service.
“During this transitional period for Helios and MoviePass, we have been focused on reducing our burn rate and striving to improve our business model and we are very encouraged by our Q3 financial results,” Ted Farnsworth, CEO of Helios, said in a statement.
HMNY, which just canceled a special shareholder meeting after failing to secure enough investor interest in a second reverse-stock split, is desperately trying to rewrite the narrative on a money-hemorrhaging ticket subscription service that posted a loss of $105 million through June 30.
Indeed, the company posted a loss of $28.5 million, which it attributed to a $75.5 million (70.6%) gross margin improvement. Revenue increased $7.2 million, or 9.8%, to $80.5 million compared to the prior-year quarter.