Is This the Quarter That Kills MoviePass?
Helios and Matheson Analytics Inc. (NASDAQ: HMNY), the parent company of MoviePass, is continuing to hemorrhage cash. The company is on the verge of collapse, and its most recent update to investors is not helping its case.
The company posted a gross loss of $104.6 million, a sizable shift from last year when it reported a gross profit of $223,000. Currently, the company has just $175.3 million of total assets left on hand, including a meager $15.5 million in cash.
Last week, MoviePass cut its standard plan to three movies per month, down from its one movie per day. The firm also experimented with peak pricing, limited showings and ticket verification to combat the abuse of the service.
According to CNBC:
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.
Shares of Helios and Matheson were last seen down about 20% at $0.04.