In a revised financial filing, the company revealed it had lost millions more than originally reported.
13 Mar, 2019FORTUNE.COM
Investors are getting another pass at MoviePass’ earnings from last year.
The company’s owner, Helios & Matheson, has revised MoviePass’ 2018 financial filings, according to Variety. The famously beleaguered movie-ticket outfit--which charges theatre-goers a flat monthly rate, rather than individual ticket fees--took a hit in several categories. Net losses for the first three financial quarters, initially reported to be $246.9 million, now stand at $256.4 million. Revenues were down, as well: While Helios & Matheson had claimed revenues of $204.9 million for the first three fiscal quarters of 2018, that figure was downgraded to $198.3 million.
In its revised filing, Helios & Matheson blamed the altered figures on several factors, including a $700,000 revenue-bump from a subscription partnership with Costco--even though those subscriptions were later refunded. It also noted an “erroneous recognition” of nearly $6 million in revenue from subscriptions that were in a “suspended state,” waiting for users to consent to new pricing plans.
The new filing is the latest stumble for MoviePass, which experienced a brief but exciting surge last summer, as users scrambled to take advantage of--and make sense of--the company’s constantly changing pricing plan. But the company was plagued by customer-service problems, shaky finances, and a general sense of of high-speed instability. Last fall, MoviePass seemed headed toward bankruptcy, but after new financing was secured, the company revised its pricing plans, again.
As of today, MoviePass offers monthly plans ranging from $9.95 to $24.95. Recent estimates indicate the company had as many as 3 million subscribers.
Though some in Hollywood flinched at MoviePass’ subscription-service model for theatergoing, at least one company has successfully followed its lead: Last month, AMC’s own monthly program, AMC Stubs A-List, announced it had added about 100,000 new subscribers this year.