![]() ![]() At 100,000 subscribers, a similar rate of losses per subscriber would result in only $0.3 million in cash burn per month (ignoring the other parts of Helios and Matheson's businesses). ![]() ![]() At 400,000 subscribers, if MoviePass was losing $3 per subscriber per month, that would translate into $1.2 million in cash burn per month for that portion of Helios and Matheson's operations. The shrunken subscriber base should help reduce Helios and Matheson's cash burn though. The revenue numbers and SensorTower data point to massive subscriber losses and few new signups though, so the disagreement is probably over whether the April 2019 subscriber count was down something like 88% or 93% from the peak. Helios and Matheson responded to Business Insider that those reported numbers were incorrect, but didn't provide any further details. The rate of subscriber decline appears to be slowing a bit, but MoviePass could still end up with under 100,000 subscribers by late 2019.Ī Business Insider report from April mentioned that MoviePass was down to 225,000 subscribers and that the MoviePass Uncapped program had only signed up 13,000 subscribers. The amount of new users signing up for MoviePass is pretty negligible, with its iPhone app ranking (for the Free Entertainment category) often barely holding on to the Top 1000. This also means that AMC's Stubs A-List program has more subscribers than MoviePass now. This would put it at below the number of subscribers it had in October 2017. My estimate is that MoviePass's subscriber base averaged around 600,000 during Q1 2019, and that it likely exited the quarter with significantly under 500,000 subscribers remaining. It did note that revenues were approximately $17.8 million in Q1 2019, indicating that MoviePass's subscriber base has continued to plummet. Helios and Matheson hasn't filed its 10-K for 2018 or its 10-Q for Q1 2019 yet. Revenues And Subscribers Continue To Plummet A reverse split of 1 share for 1,000 shares would reduce this to around 3 million common shares outstanding. The company also indicated that it had roughly 3 billion common shares outstanding as of early April. A reverse split of 1 share for 1,000 shares would increase its share price to around $2.40 per new share if it maintains its most recent market capitalisation amount. With Helios and Matheson's stock trading at a minimal price now, I'd expect it to implement the maximum reverse split. However, the votes from the Series A and Series B preferred stockholders helped the reverse split proposal pass. ![]() It appears that a slight majority of the roughly 2 billion common shares outstanding as of the late March record date voted against allowing a reverse split. Helios and Matheson's shareholders voted to allow a reverse split of its common stock at a ratio of between 1 share for 2 shares and 1 share for 1,000 shares. As Sinemia's shutdown indicates, it is quite hard to make a movie subscription business work when the company is paying full-price (or near full-price) for tickets and doesn't have a substantial additional revenue stream such as concession sales. Helios and Matheson's main product (MoviePass) continues to see its subscriber base shrink though. This will likely greatly reduce its share count (which had reached over 3 billion) and should get its stock to above $2 again, at least temporarily. Helios and Matheson ( OTC:HMNY) looks set to do another reverse split after gaining approval for it at a recent special meeting. ![]()
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