Executives Are Optimistic on ’06 Movie Ticket Sales

Box-office revenue at U.S. movie theaters has begun rising and may beat last year’s total, representatives of two top chains told analysts Wednesday.

So far this year, box-office revenue is up 4.2% over last year, and 11 of the last 19 weeks have shown positive comparisons, Regal Entertainment Group Chief Executive Michael Campbell told analysts at a Banc of America Securities conference in New York.

Box-office grosses fell to $8.99 billion in 2005, down 5.2% from $9.53 billion in 2004 and their lowest level since 2001, according to the National Assn. of Theatre Owners.

“The trends are beginning to reverse; the product does look good,” Campbell said, adding that January and February showed solid numbers and that March was “a little soft” owing to later rollouts of Easter holiday films.

“We would expect to see some rebound in attendance starting in April and proceeding well into the second quarter,” Campbell said. He said comparisons would probably be favorable because last year’s slump began in the second quarter.

Richard Hare, Carmike Cinemas’ incoming chief financial officer, said his company also had “really high expectations for the second quarter.”

“We should have a really good April ... and the first part of the summer looks really strong,” Hare said.

Campbell said last year’s lackluster slate of films would be compared with an upcoming roster that includes sequels to blockbusters such as “Pirates of the Caribbean: Dead Man’s Chest” and “Mission: Impossible III.”

“We still think [the slump] was product-related, but there are still issues around the edges of our business,” he said.

If the films fail to perform well, Campbell said, the industry “needs to step back at the end of ’06 and take another look.”