About Regal Entertainment Group
Regal Entertainment Group hopes to create loyal subjects out of fickle movie-goers. The largest theater owner and exhibitor in the US has around 560 theaters with some 7,300 screens in 40-plus states through its Regal Cinemas, Edwards Theatres, United Artists Theatre Company, Great Escapes Theatres, and Hollywood Theatres brands. Its theaters house an average of 12.9 screens, and more than 75% of its screens are in theaters with stadium seating. 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. It was acquired by UK-based Cineworld in a $3.6 billion reverse takeover in 2018.
Change in Company Type
Regal Entertainment was acquired by UK-based cinema chain Cineworld in a $3.4 billion reverse takeover. The deal, which closed in spring 2018, makes Cineworld the second-largest cinema chain globally after AMC.
Regal Entertainment manages its business under one reportable segment: theater exhibition operations.
Tennessee-based Regal Entertainment operates in around 45 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.
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 company uses the internet, mobile and social media, print and multimedia advertising to promote its service. Regal Entertainment conducts special interactive marketing programs for specific films and concessions items.
Regal Entertainment spends $1.1 billion on film rental and advertising costs annually.
Regal Entertainment's revenue has been growing slowly and unevenly over the last five years.
In fiscal 2017 sales decreased 1% to $3.2 billion amid a 2-3% decline across the industry in the US. Revenue from concessions was unchanged as the impact of lower attendance was mostly offset by higher revenue per customer thanks to higher beverage and popcorn sales and selective price increases. Regal's other revenue streams recorded a net 10% uptick, which include sales from its vendor marketing programs, internet ticketing surcharges, theater access fees paid by National CineMedia, and gift card and bulk-ticket purchase programs.
Net income fell 34% to $112.3 million due to lower revenue, a higher cost of concessions, and an increase in loss on disposals and asset impairments.
Cash from operations in 2017 was unchanged at $410 million.
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.
Regal announced a new pricing strategy in 2018 based on peaks and troughs in demand. This means customers will pay more to see popular films at peak times and less for unpopular films at awkward hours. The company hopes the strategy will maximize revenue from customers desperate to see tentpole releases such as Star Wars and Marvel films on their opening weekends, while drawing more customers in for cheaper mid-week showings of less popular pictures.
101 E BLOUNT AVE STE 100
Knoxville, TN 37920-1605
Phone: 1 (865) 922-1123
Employer Type: Publicly Owned
President and COO: Gregory W. Dunn
Chairman and CEO: Amy E. Miles
EVP, CFO, and Treasurer: David H. Ownby
Employees (This Location): 38
Employees (All Locations): 25,359
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