LOS ANGELES — Regal Entertainment Group, the largest movie theater chain in the U.S., will explore options including a potential sale, the company said Monday.
The announcement came as the company posted third-quarter earnings that fell sharply from a year ago because of a weak summer box office season.
Revenue for the quarter that ended Sept. 25 was $693.8 million, down 15 percent from the same period of time last year. The firm’s earnings fell to 17 cents per share, compared with 48 cents a share a year ago.
The summer box office suffered industrywide, with movie ticket sales in the U.S. and Canada down 15 percent from last year.
The company said its board of directors has authorized the exploration of “strategic alternatives to enhance shareholder value,” including a potential sale of the company.
Shares surged 17 percent in after-hours trading, after closing at $20.51 during the regular session.
“Commitment to delivering shareholder value has been the cornerstone of our strategy for many years and we believe today’s announcement along with the declaration of our sixth special dividend clearly demonstrate that commitment,” said Amy Miles, Regal’s chief executive, in a statement.
The last sale of a major theater chain came in 2012 when China’s Dalian Wanda Group bought AMC, the nation’s second largest, for $2.6 billion.
