Helios and Matheson Analytics Inc., the parent company of movie ticket discount service MoviePass, announced its second quarter fiscal results Tuesday.
According to the report, the company suffered a $104million gross loss and a drop of $132.47 per share.
CNN Money reported that MoviePass was trading at a meager 4 cents per share as of Wednesday morning.
The financial report comes weeks after the discount service imposed haphazard changes to reduce costs.
MoviePass announced last week it is walking back a planned 50 percent price increase after subscriber backlash.
But the cash-starved company imposed a cap Wednesday of three movies per month, instead of one every day.
Scroll down for video
MoviePass, a U.S. movie ticket subscription app, is seen on a mobile phone in this photo illustration in New York, U.S., May 15, 2018. Its parent company posted Tuesday its second quarter fiscal results
CEO of MoviePass Mitch Lowe attends ‘An Evening with Beverly Luff Linn’ Dinner presented by MoviePass on January 20, 2018 in Park City, Utah
The company said the new plan includes ‘many major studio first-run films,’ though there will be exceptions the company didn’t specify.
In doing so, MoviePass is rescinding a recent cost-cutting move of barring viewings of most major releases during the first two weeks.
MoviePass has shown that many moviegoers will make time to hit theaters when movies are affordable, despite more convenient options such as Netflix and video on demand.
U.S. movie ticket sales are up 8 percent so far this year, according to comScore. MoviePass claims credit for some of that.
MoviePass has grown to 3million subscribers, from about 20,000, since it slashed monthly rates nearly a year ago to $10, from as high as $50.
But that success has proven costly. Because MoviePass typically pays theaters the full cost of tickets – $15 or more in big cities – a single movie can put the service in the red.
An ad for the movie ticket discount service is shown above in this undated photo in a theater
Helios and Matheson Analytics Inc. recently had to take out a $5million emergency loan to pay its payment processors after missed payments resulted in service outages.
MoviePass made many changes in recent weeks including blocking most or all evening screenings, regardless of when the movie came out.
That has led to complaints from subscribers, some of whom have threatened to leave for a rival plan from the AMC theater chain.
Though MoviePass says it’s not raising monthly prices to $15, there’s still a hidden price increase. The company already has a three-movie plan for $8 a month. Now, it will be $10.
MoviePass is also rescinding other cost-cutting measures, including surcharges for popular movies and show times and requirements to send photographs of ticket stubs to combat fraud.
MoviePass said the new cap affects only about 15 percent of subscribers – those who now watch four or more movies a month.