- Cinemark (CNK -4.6%), Regal Entertainment (RGC -3.9%), Eros International (EROS -4.7%), Reading International (RDI -2.7%) and IMAX (IMAX -8.5%) are all slumping after a painful earnings report and guidance cut is turned in by AMC Entertainment (AMC -24.5%).
- MoffettNathanson was well-ahead of the sector disruption with its downgrade of CNK and RGC earlier this summer. The boutique firm cited the increased risk of studios moving into premium video on-demand, analysis that takes on extra weight after AMC's cut in EBITDA forecast.
- "We continue to expect at least one of the major studio (either Universal, Warner Bros. or Fox) to grow frustrated enough by waiting to reach a mutually beneficial deal with exhibitors and move forward with their own PVOD press release by 4Q 2017, if not sooner," wrote MoffettNathanson.
- The question of which exhibition partners agree to take part of an early release window and at what split could be crucial for the sector.
- Previously: AMC Entertainment tanks on Q2 earnings warning (Aug. 1)
- Now read: Regal Entertainment: 2 Thumbs Up
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