Helios and Matheson Analytics Inc (NASDAQ: HMNY) is having an incredibly strong day in the market today, and for good reason. The company issued a press release showing evidence that profit margins are likely to rise significantly as MoviePass gains in popularity. Today, we’ll talk about the press release, how the stock reacted to the news, and what we’ll be watching for ahead.
HMNY Signs Performance-Based Agreement
As mentioned above, Helios and Matheson Analytics is having an incredibly strong day in the market today after announcing that it has signed a performance-based marketing revenue agreement. In a press release that came out early this morning, the company announced a marketing and performance-based revenue agreement with an independent movie distribution company.
According to the terms of the agreement, MoviePass will provide active marketing services to a particular title and will earn revenue based on the incremental increase in ticket prices demonstrated in the theatrical release of the film. Of course, this is likely the first of many agreements to come like this as HMNY continues to actively engage major Hollywood studios and independent film distributors. In a statement, Mitch Lowe, CEO at MoviePass, had the following to offer:
“The data speaks for itself – our data shows that MoviePass has a demonstrable impact on revenue figures and percentage contributions to overall box office receipts for both major studio releases and independent films during Opening Weekend… And in partnering actively with studios, exhibitors and distributors to promote particular titles, we continue to drive even more tangible benefits to both movie exhibitors and studios. With studio-driven revenue, we have delivered on our promise to investors that our business model will continue to expand beyond subscription fees.”
The above statement was followed up by Khalid Itum, VP of Business Development at HMNY’s MoviePass. Here’s what he had to offer:
“Studio and distributor executives are increasingly understanding our impact on box office receipts. But we’ve moved beyond ideological discussions in Hollywood to the tactical – how we can partner with studios and distributors to actively influence moviegoing behavior in order to have our subscribers select and buy tickets to their titles over other movie options… And while it can no longer be disputed that our opening weekend box office numbers are consistently significant at this stage in our company’s growth, I think the real story here is the velocity of our impact: that MoviePass’ contribution to those box office totals grow beyond opening weekend for sustained performance in the theatrical window even as box office receipts decrease overall on a weekly basis.”
How The Stock Reacted To The News
As investors, one of the first things that we learn is that the news moves the market. Any time news is released with regard to a publicly-traded company, we can expect to see a reaction among investors. Of course, with such positive news surrounding Helios and Matheson Analytics, it’s no surprise that we’re seeing strong movement in the value of the stock today. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:38), HMNY is trading at $9.18 per share after a gain of $0.73 per share (8.69%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on HMNY. In particular, we’re interested in following the story surrounding MoviePass. Of course, we’re watching for new marketing agreements surrounding specific titles and the growth in subscriptions. However, we’re also watching for news surrounding the company’s goal of selling the data they accumulate through the growing number of subscriptions on the service. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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