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$HMNY

Reuters: Helios and Matheson drops on stock sale plan to raise MoviePass stake

 
 

(Reuters) - Helios and Matheson Analytics Inc (HMNY.O) said on Tuesday it would sell shares to raise funds to increase its stake in online ticketing service MoviePass, sending Helios’ shares plunging 22 percent aftermarket.

The company’s shares soared as much as 31 percent in regular trading after retailer Costco Wholesale Corp (COST.O) agreed to offer a subscription plan that would cover a year of membership for both MoviePass and streaming service Fandor for a flat fee of $89.99.

Helios did not disclose the size, date or terms of the offering.

The company’s shares have sky-rocketed since Aug. 15, when it agreed to buy a majority stake in MoviePass for $27 million.

MoviePass, a Netflix-style movie subscription business, allows unlimited access to more than 90 percent of U.S. theaters for a monthly subscription fee of $9.95.

The switch to a single $9.95 model in August helped the company’s subscriber numbers surge to over 400,000 from less than 20,000 within a month.

To Tuesday’s close of $10.08, Helios had more than tripled  in value this year.

Helios is a highly shorted stock, with about 42 percent of its total float held by short sellers as of Nov. 30, according to Thomson Reuters data.

Seeking Alpha: MoviePass owner announces share offering

 
 
  • Helios and Matheson Analytics (NASDAQ:HMNY) announces a new public offering of shares and warrants that will be issued separately.
     
  • Details on the size of the offering weren't disclosed.
     
  • The company says that it intends to use the proceeds from the offering to increase its ownership stake in MoviePass and support business operations of the movie ticket subscription platform.

InvestorPlace: Helios and Matheson Analytics Inc. Stock Soars on Costco MoviePass Deal

Costco is selling a MoviePass and Fandor subscription for $89.99

Helios and Matheson Analytics Inc (NASDAQ:HMNY) stock was on the rise today following news of a deal with Costco Wholesale Corporation (NASDAQ:COST).

The deal between Costco and Helios and Matheson Analytics Inc has to do with MoviePass. MoviePass is a majority-owned subsidiary of HMNY. The deal allows Costco members to purchase a one-year subscription to the service for $89.99.

The deal also includes a one-year subscription to movie-streaming service Fandor as well. The offering will only be available to Costco customers for a limited time. Those interested will be able to purchase the subscriptions via the retailer’s website from Dec. 12, 2017 to Dec. 18, 2017.

Costco customers that order the MoviePass and Fandor subscriptions will receive digital codes they can redeem for the services. These codes will need to be entered on MoviePass’ and Fandor’s websites to start the subscription service.

For those doing the math, the offer from Helios and Matheson Analytics Inc, Costco and Fandor saves quite a bit of cash. A subscription to MoviePass costs $9.95 per month. This comes to roughly $120 per year. The deal is worth it just for that, but the addition of the Fandor subscription makes it even better for COST customers.

“We’ve long been fans of Fandor’s library of movies and we’re excited to partner with them and Costco to bring new members this incredible limited-time offer,” Mitch Lowe, CEO of MoviePass, said in a statement. “MoviePass is ultimately about celebrating our love of movies, whether you stream them at home or experience them on the big screen.”

HMNY stock was up 15% as of noon Tuesday and is up 178% year-to-date.

Cheddar: MoviePass Lets You Go to Theaters For Less than $7 a Month

 
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National movie ticket prices are at an all-time high, but one company wants to tempt Americans with a $6.95 monthly subscription service, which allows moviegoers to hit the cinema once a day, for as many days as they'd like.

That service, Movie Pass, charges about $1.70 less for a full monthly subscription than the national average cost of a single movie ticket in the U.S.

Ted Farnsworth is the CEO at Helios and Matheson, the majority owner of MoviePass. He says the company is leaning towards a data-driven business model.

“That’s really where you make your money --on the data side,” Farnsworth said.

Helios and Matheson recently doubled down on its investment in MoviePass, where Netflix co-founder Mitch Lowe is at the helm, by funneling $100 million into the company. Lowe said that MoviePass will use this funding to expand its data science program.

"This latest round of investment will allow MoviePass to continue to deliver on its mission of staying the number one movie theater subscription service in the country," he said. "As demand for our service continues to accelerate among consumers, the early data we are seeing on movie-going behavior can be tremendously valuable to both the studios and theaters.”

But is this a risky investment? Data suggests that people prefer to watch movies at home. According to a Statista report, a cool 52 percent of Americans who watch movies prefer to stay home, while only 12 percent would actually go to a theater. Still, the same firm projects that the movie industry will hit $50 billion by 2020. As of 2016, it was worth $38 billion.

MoviePass is riling up some industry leaders, however. Movie giant AMC Theaters released a statement this summer calling the company a “small fringe player,” and stated that AMC is working with its lawyers to see if it can prevent MoviePass tickets from being used at its theaters.

“MoviePass announced a change to its ‘subscription model’ that would allow consumers to see up to 365 movies a year for a monthly fee of $9.95. MoviePass envisions paying AMC its full ticket price without discount. The AMC average ticket price for watching a movie at AMC Theatres in the most recent financial quarter was $9.33,” the statement said.

“From what we can tell, by definition and absent some other form of other compensation, MoviePass will be losing money on every subscriber seeing two movies or more in a month.”

This week, MoviePass launched a limited-time holiday sale that allows subscribers to sign up for under $7, although it usually costs 9.95 per month.

Farnsworth says that lowering the cost has brought in an influx of new customers. He also says that the company is partnering with tech companies like Uber and Lyft to offer “movie night” promotions, and similarly with movie studios.

“We are the only company that understands every move you make, what movies you go see,” he said. “It’s a very sustainable model, that’s not our issue at all, that’s why we lowered the price.”

TechCrunch: MoviePass drops pricing to under $7 per month, if you opt for the annual plan

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MoviePass, the subscription service that lets consumers pay a monthly fee to see unlimited movies in theaters across the U.S., is slashing its prices yet again. The company announced today it’s now offering its service for $6.95 per month, down from the current price of $9.95 per month, when customers commit to a one-year subscription plan. That works out to a flat fee of $89.95 annually.

The deal is a limited-time promotion, as opposed to a permanent pricing change, but MoviePass didn’t say how long the offer is valid. However, it is open to both new and existing subscribers – the latter who would receive a 25 percent savings on their current subscription if switching over to the annual plan.

This is not the first time that MoviePass has dropped its pricing.

When the company introduced its $9.95 per month, one-movie-per-day plan this August, down from $15 for 2 movies per month (or more in select markets like L.A. and NYC, and going as high as $50), it saw so many new sign-ups it had trouble meeting demand. Within a couple of days, 150,000 new users joined, and by September, the company said that its number of subscriptions had grown to 400,000.

As of October, MoviePass had grown to over 600,000 subscribers.

It also said its subscriber churn had dropped from 4.2 percent in the first month, to 2.4 percent in month two.

The service is today majority owned by data firm Helios and Matheson Analytics Inc. (HMNY), after selling a $27 million stake in August. The firm then increased the purchase price in October to $28.5 million, raising its stake to 53.71 percent from 53 percent. In November, HMNY announced plans to raise $100 million to increase its investment even further.

This influx of capital has allowed MoviePass to continue to subsidize the cost of this subscription to the benefit of pass holders, though obviously not profitability at this point. It’s operating in the red while it focuses on growing subscribers.

MoviePass hopes to eventually convince theater owners it’s growing their customer base, so it can be cut in on profits, according to CEO Mitch Lowe, in a report from Variety in August. It also believes it may be able to sell the data collected on its subscribers in the future.

In the meantime, MoviePass is a ridiculously cheap deal for movie-goers. It now works at 91 percent of theaters across the U.S., though not all are happy with the service.

AMC specifically threatened the startup with legal action in August, and announced that MoviePass was “not welcome here.” It said it would try to find a way to opt out, as it believes lowering the cost of ticket prices would devalue the theater-going experience overall.

Others, like Regal and Cinemark, are taking a wait-and-see approach, Lowe earlier said. 

“HMNY continues to be the biggest supporter of MoviePass, as it outpaces any other movie theater subscription service and continues to disrupt the movie theater industry,” said Ted Farnsworth, Chairman and CEO of HMNY, in a statement about today’s new, lower pricing. “We look forward to helping MoviePass continue to broaden its reach and modernize the movie theater industry,” he added.

The annual subscription is available now through MoviePass.com

Insider Financial: Helios and Matheson Analytics Inc. Enters Into Agreement to Issue $100 Million in Convertible Notes to Institutional Investors In Order to Increase Its Stake in MoviePass™

by Chris Sandburg

by Chris Sandburg

It has been a little over a week since we last covered Helios and Matheson Analytics Inc (NASDAQ:HMNY) and, at the time, the company was trading considerably down on its pricing from just a few days earlier.

From highs around $35 during early to mid-October, the company had fallen to around $10 a share – a decline of a little over 71%.

The decline came in part due to profit taking on the steep run-up throughout September and in part due to markets letting off steam after what was (in all likelihood) an overenthusiastic response to the development that kicked it all off.

Read more here

Forbes: MoviePass Owner Helios & Matheson's Shares Soar 47% On $100M Debt Issuance News

by Rob Cain

by Rob Cain

No media-related stock has been on a wilder rollercoaster ride these past few months than Helios & Matheson (NASDAQ:HMNY), owner of the MoviePass movie ticket subscription service. The company’s share prices went on a 1,400 percent tear starting on September 15, when MoviePass announced that it had signed up 400,000 subscribers in the month since it rolled out its new $9.95 per month “all you can watch” plan. After rocketing from $2.50 per share on September 14 to a high of $38.66 just 19 trading sessions later on October 11, the stock rapidly drifted down to the $10.00 range, where it bounced around for a few weeks until yesterday.

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That was when Helios revealed that it had secured a $100 million convertible debt commitment from institutional investors for the purpose of further funding MoviePass, and for general corporate purposes. That sparked a 45.2% pop for HMNY’s shares on Tuesday, to a closing price of $14.20.

Read full article here

 

Benzinga: Analyst Still Sees Nearly 100% Upside In Helios And Matheson, Says MoviePass Will Help Revive Movie Ticket Sales

by Elizabeth Balboa

by Elizabeth Balboa

Helios and Matheson Analytics Inc (NASDAQ: HMNY) closed up 47 percent Monday on news of an increased stake in MoviePass.

That brings the stock up 330 percent year-to-date — and one expert thinks it’s still has room to run.

“We argue large movie theater chains will benefit from MoviePass that we expect will help revive movie ticket sales, which leads to more concession sales,” Maxim analyst Brian Kinstlinger wrote in a Monday note. “Furthermore, we believe the Hollywood studios may be less hesitant than the theater chains to compensate MoviePass if it can fill more seats.”

MoviePass recently reported that it saw a 30-fold increase in paying monthly subscribers from 20,000 in August to 600,000 in October.

Read more here

MarketWatch: Helios & Matheson is raising $100M in convertible notes to increase ownership in MoviePass

by Trey Williams

by Trey Williams

Shares of MoviePass-owner Helios & Matheson Analytics Inc. HMNY, -2.49% were up nearly 9% in premarket trade after the data and technology company said it would raise $100 million in convertible notes in order to increase its stake in MoviePass. The conversion price of the notes is $12.06 per share. The deal will allow Helios and Matheson to pay the remaining $5 million balance the company owes MoviePass after closing its previous securities purchase agreement back in August. The financing will also be used to pay MoviePass an additional $20 million to exercise its option to increase its investment in the movie theater subscription service. Canaccord Genuity served as the sole placement agent for the financing, and Palladium Capital Advisors acted as a financial advisor to Helios and Matheson in the financing. "This investment should allow us to further augment our data science capabilities and platform to respond to the needs of studios and exhibitors and their challenges in better understanding their customers," MoviePass Chief Executive Mitch Lowe said in a statement. MoviePass recently said its subscriber base has reached 600,000; up from 20,000 before its subscription price cut back in August. Shares of Helios and Matheson are up more than 192% in the year to date, while the S&P 500 index SPX, -0.38% is up close to 16% and the Dow Jones Industrial Average DJIA, -0.43% is up more than 19%.

Real Money: MoviePass Service Could Be the Ticket for Helios & Matheson

Have you seen Helios & Matheson (HMNY) today? Have you seen the stock this month? The stock traded at around two bucks until mid-September. This morning, the shares have traded at just under $39, and just above $28. Nothing to see here. Keep moving along. The stock closed on Friday afternoon at $15.75. So what gives? And who the heck is Helios & Matheson? 

CNA Finance: Helios and Matheson Analytics (HMNY) Stock: Lowe Creates A Monster With MoviePass

In just 3 weeks, HMNY was able to boast some impressive growth. In fact, in these 3 weeks, subscriber growth went from the low tens of thousands to more than 400,000! Considering this massive spike in demand, it only makes sense that we're going to see more strong growth, and Lowe believes this to be the case as well. While modest, Lowe made it clear that the subscriber base is growing at an incredibly fast rate. Here's what he had to say:

I thought it would have taken us more than six to eight months to get as many subscribers as we did in the first two days.”

Seeking Alpha: MoviePass And Helios: Executive Interview

The critics were wrong - taking a page from the Netflix and Redbox playbook, Lowe introduced a revolutionary pricing model for MoviePass. The service went viral, attracting 400,000 paying members in less than a month.

Bloomberg Markets: Dave Wilson’s Stock of the Day for Sept. 20

Bloomberg Markets with Carol Massar and Cory Johnson.

GUEST: David Wilson Stocks Editor Bloomberg News Discussing his "Stock of the Day" Helios & Matheson Analytics (HMNY). Helios & Matheson Analytics Inc.’s shares are surging after the technology-services company agreed to buy a majority stake in MoviePass, a theater subscription service. The rally began on Friday, after Helios disclosed that MoviePass had added about 400,000 subscribers in the past month. The company is seeking shareholder approval for a convertible-note sale to finance the purchase, which will cost as much as $27 million.

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