What to Know
MoviePass is contributing tens of millions in additional revenue for the Helios and Matheson — it's just burning cash at a much faster rate
The popular movie subscription service has been facing public scrutiny and changing its offerings in an effort to reach profitability
Shares of Helios and Matheson shed 30 percent at Wednesday's open
MoviePass' parent company, Helios and Matheson Analytics, lost $100 million in the second quarter, according to its most recent quarterly report filed late Tuesday, on pace to blow through its remaining assets in the next quarter if its new turnaround plan doesn't work out.
Helios and Matheson posted a gross loss of $104.6 million, a drastic swing from the year-ago period when it reported a gross profit of $223,000. The company has just $175.3 million of total assets left on hand, including $15.5 million in cash.
Shares of Helios and Matheson opened roughly 30 percent lower Wednesday. But the stock trades for just a few cents, so it doesn't take much to send it on massive swings.
The popular movie subscription service has been facing public scrutiny and changing its offerings in an effort to reach profitability. Last week, MoviePass cut its standard plan to just three movies per month, down from one movie per day. It also experimented with peak pricing, limited showings and ticket verification — all to reduce abuse of the service.
Helios and Matheson doesn't break out specific revenue for MoviePass, but said the decline in quarterly profit is "primarily due to operating expenses of MoviePass."
MoviePass is contributing tens of millions in additional revenue for the Helios and Matheson — it's just burning cash at a much faster rate. Total operating expenses for Helios and Matheson increased by 1,000 percent year over year during the second quarter, pushing total losses from operations past $126 million.
This story first appeared on CNBC.com. More from CNBC:
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