Regal Entertainment Group hopes to create loyal subjects out of fickle movie-goers. The largest theater owner and exhibitor in the US has more than 565 theaters with nearly 7,325 screens in 40-plus states through its Regal Cinemas, Edwards Theatres, United Artists Theatre Company, and Hoyts Cinemas brands. Its theaters house an average of 12.8 screens, and more than 75% of its screens are in theaters with stadium seating. It also claims to be one of the most modern theater circuits in the country. Regal Entertainment co-owns National CineMedia, a joint venture that sells in-theater ads and operates a video network that distributes digital content to theaters. Regal Entertainment Group was formed in 2002.
Tennessee-based Regal Entertainment operates 567 theaters in 42 US states, the District of Columbia, Guam, Saipan, and American Samoa. The chain targets midsized metropolitan markets and suburban growth areas of larger cities. It has a large number of theaters in California, Florida, and New York; those three states together account for nearly a third of Regal Entertainment's locations.
Through its approximately 20% stake in National CineMedia, Regal Entertainment uses that service as a lower-cost digital video and communications tool to digitally distribute in-theatre advertising and footage of live events. National CineMedia complements the company's business of renting out theaters for corporate meetings, seminars, and distance learning programs.
As part of its strategy to participate in partnerships, Regal Entertainment jointly owns film distribution company Open Road Films with AMC Entertainment.
Sales and Marketing
Regal Entertainment employs an interactive marketing program for specific films and concession items to increase attendance and consumption. Its Regal Crown Club loyalty program rewards frequent moviegoers with deals of concessions and more. The loyalty program boasts more than nine million active members.
The company reported $2.99 billion in revenue for fiscal 2015. That was a 2% decrease compared to the prior fiscal period.
Regal Entertainment's 2015 net income was $105.6 million, a 33% decrease compared to fiscal 2014. The decrease was due to decreased revenue combined with increased rent expenses.
Regal Entertainment's cash flow remained strong in fiscal 2015, with the company reporting having about $350 million in cash on hand.
A major part of Regal Entertainment's strategy to get customers out of the living room (where they are more inclined to watch DVDs from fancy home theater systems) and into the movie theater is through digital cinema. The company has most of its screens outfitted with digital projection systems and stadium seating. The theater chain completed its 3D deployment a couple of years ago.
An additional digital effort includes Regal Entertainment's proprietary format known as "Regal Premium Experience", or RPX. Auditoriums with RPX feature a 60-foot wide screen and a custom-built sound system. Regal Entertainment also has partnership with IMAX, and operates some 66 screens in the giant digital format. While IMAX screens are similar to the RPX format, Regal Entertainment is not ending its relationship with IMAX. It plans to grow its total count of RPX and IMAX screens.