Deadpool & Wolverine breaks multiple records in Reading’s global cinema circuit
Rhea-AI Summary
Reading International (NASDAQ: RDI) reported record-breaking performance for the opening weekend of Deadpool & Wolverine across its global cinema circuit. The film set new benchmarks for R-rated movies in the U.S. and MA 15+ rated movies in Australia, both in attendance and box office. It also achieved the highest opening weekend box office for premium large format screens in the U.S. since 2019.
The company's specially curated F&B menu and merchandise offerings contributed to significant revenue gains, including the highest F&B revenues for any weekend in 2024 and record-breaking merchandise sales. In Australia, a special BFF combo helped deliver the highest opening weekend F&B revenues so far in 2024.
CEO Ellen Cotter expressed optimism about the film's long-term performance and the strong momentum expected to continue into the second half of 2024 with upcoming releases.
Positive
- Record-breaking opening weekend for Deadpool & Wolverine in terms of attendance and box office across Reading's global cinema circuit
- Highest F&B revenues for any weekend so far in 2024 in both U.S. and Australian cinemas
- Biggest movie-themed merchandise revenues for any movie ever in U.S. cinemas
- Highest opening weekend gross box office in 2024 for U.S., Australian, and New Zealand cinema circuits
- Strong performance of premium large format screens (TITAN LUXE, TITAN, and IMAX)
Negative
- None.
Insights
Reading International's (NASDAQ: RDI) record-breaking performance with Deadpool & Wolverine signifies a potential turning point for the cinema industry and RDI's financial outlook. The movie's success across multiple metrics - attendance, box office and F&B revenues - in all of RDI's operating regions (U.S., Australia and New Zealand) is particularly noteworthy.
Key financial implications include:
- Increased revenue streams: Record-breaking F&B sales and merchandise revenues indicate effective upselling strategies, potentially boosting profit margins.
- Premium format success: Strong performance in premium large format screens (TITAN LUXE, TITAN, IMAX) suggests higher-margin ticket sales.
- Market share gains: RDI's ability to capitalize on a blockbuster release may strengthen its competitive position in the cinema industry.
While this weekend's performance is impressive, investors should consider:
- Sustainability: Can RDI maintain this momentum with upcoming releases?
- Operational efficiency: How will increased attendance impact costs and margins?
- Long-term trends: Does this success signal a broader recovery in cinema attendance post-pandemic?
Overall, this news is positive for RDI, potentially indicating a strong Q3 2024 performance. However, prudent investors should monitor upcoming releases and broader industry trends before making investment decisions.
The phenomenal success of Deadpool & Wolverine across Reading International's cinema circuit offers valuable insights into current market trends and consumer behavior in the entertainment industry:
- R-rated appeal: The record-breaking performance for an R-rated movie in the U.S. and MA 15+ in Australia suggests a strong market for mature content, potentially influencing future production decisions.
- Premium experience demand: The success of premium large format screens indicates consumers' willingness to pay for enhanced viewing experiences, a trend that could shape future cinema investments.
- F&B innovation: The effectiveness of themed menus and merchandise demonstrates the potential for ancillary revenue streams and the importance of creating a holistic entertainment experience.
- Global appeal: Strong performance across all of Reading's markets (U.S., Australia, New Zealand) underscores the international draw of certain franchises and the potential for global marketing strategies.
This success, combined with other recent hits mentioned (Inside Out 2, Despicable Me 4, etc.), suggests a robust recovery in the cinema industry. However, it's important to consider whether this represents a sustained trend or is driven by pent-up demand and nostalgia for familiar franchises. The industry's ability to maintain this momentum with new, original content will be a key indicator of long-term health.
For Reading International, this performance demonstrates their ability to effectively capitalize on major releases, which could strengthen their position with studios and in negotiations for future releases. However, the true test will be their ability to maintain engagement and revenue growth beyond these tentpole events.
NEW YORK, July 30, 2024 (GLOBE NEWSWIRE) -- Reading International, Inc. (NASDAQ: RDI) (“Reading” or our “Company”), an internationally diversified cinema and real estate company with operations and assets in the United States, Australia, and New Zealand, today announced that this past weekend’s opening of the highly anticipated, Deadpool & Wolverine, set several records across its global cinema circuit, including:
- The biggest opening weekend for any R-rated movie ever in our U.S. Cinema division, in terms of both attendance and box office.
- The biggest opening weekend for any MA 15+ rated movie ever in our Australian Cinema division, in terms of both attendance and box office.
- The biggest opening weekend box office gross, on a same-store basis, for our premium large format screens (i.e. TITAN LUXE, TITAN and IMAX) for any movie in our U.S. Cinema division.
- Our U.S. Cinema team created a specially curated Deadpool & Wolverine F&B menu and offered Deadpool & Wolverine collector’s merchandise for sale, which helped deliver (i) the highest F&B Revenues for any weekend so far in 2024, (ii) the highest ever single day F&B spend per patron on Thursday, July 25, the day the movie opened, (iii) the biggest opening weekend F&B Revenues for a movie themed menu since 2019 and (iv) the biggest movie-themed merchandise revenues for any movie ever, despite also being the fastest to sell-out.
- Our Australian Cinema team created a special BFF combo inspired by Deadpool & Wolverine, which was the biggest selling F&B item opening weekend (Thursday-Sunday) and helped deliver (i) the highest opening weekend F&B Revenues for any weekend so far in 2024 and (ii) the second highest opening weekend F&B Revenues ever.
- The biggest opening weekend gross box office for our premium large format screens (i.e. TITAN LUXE, TITAN and IMAX) for any movie in our global circuit since Thor: Love and Thunder in 2022.
- The biggest opening weekend gross box office so far in 2024 for each of our U.S., Australian and New Zealand cinema circuits.
Ellen Cotter, President, and Chief Executive Officer stated, “The powerful marketing efforts of Disney and Marvel delivered a tremendous result with Deadpool & Wolverine smashing multiple industry records, including delivering the highest R-rated opening weekend of all time both worldwide and domestic. This past weekend’s box office in each of our U.S., Australian and New Zealand cinema divisions was far and away the highest in 2024. And, with a Rotten Tomatoes Audience Score of
Forward-Looking Statements about Reading International, Inc.
This press release contains certain statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are qualified by the inherent risks and uncertainties surrounding future expectations generally and also may materially differ from actual future experience involving any one or more of such statements. The record setting results referenced in this press release are not necessarily indicative of future results.
About Reading International, Inc.
Reading International, Inc. (NASDAQ: RDI), an internationally diversified cinema and real estate company operating through various domestic and international subsidiaries, is a leading entertainment and real estate company, engaging in the development, ownership, and operation of cinemas and retail and commercial real estate in the United States, Australia, and New Zealand.
Reading’s cinema subsidiaries operate under multiple cinema brands: Reading Cinemas, Consolidated Theatres and the Angelika brand. Its live theatres are owned and operated by its Liberty Theaters subsidiary, under the Orpheum and Minetta Lane names. Its signature property developments, including Newmarket Village in Brisbane, Australia, and 44 Union Square in New York City, are maintained in special purpose entities.
Additional information about Reading can be obtained from our Company's website: http://www.readingrdi.com.
For more information, contact:
Gilbert Avanes – EVP, CFO, and Treasurer
Andrzej Matyczynski – EVP Global Operations
(213) 235-2240
FAQ
What records did Deadpool & Wolverine break for Reading International (RDI) cinemas?
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