Helios and Matheson, A Box Office Hit, A Wall Street Enigma, Analysts Review

Helios and Matheson Analytics Inc. (NASDAQ: HMNY) is a provider of information technology services and solutions, offering a range of technology platforms focusing on big data, artificial intelligence, business intelligence, social listening, and consumer-centric technology. Helios currently owns approximately 92% of the outstanding shares of MoviePass Inc., a premier movie-theater subscription service.

2018 has been rough for HMNY shares. Beginning the year at $7.23 per share, the current price is just $.38 per share.


Recent Events

June 13, 2018. MoviePass™, the nation’s premier movie theater subscription service and a majority-owned subsidiary of Helios and Matheson announced that it has exceeded 3 million paying subscribers since announcing its low-cost subscription plans in August 2017. MoviePass’ rapid growth is within its projections that estimate the service will exceed 5 million paying subscribers by the end of 2018. MoviePass currently represents more than 5% of total U.S. box office receipts, with its peak weeks nearing 8% of box office. https://finance.yahoo.com/news/moviepass-surpasses-3-million-paying-130000342.html


May 30, 2018. Helios and Matheson announced that Emmett Furla Oasis Films (“EFO Films”) has granted Helios the exclusive option to acquire the entire film library and current production slate of EFO Films. The EFO Films library includes acclaimed titles such as Lone Survivor and Broken City and features A-List actors such as Mark Wahlberg, 50 Cent, Sylvester Stallone, Bruce Willis, Arnold Schwarzenegger, John Travolta, Denzel Washington, Nicolas Cage, Robert De Niro, Al Pacino, Kate Bosworth, Leelee Sobieski, Anna Kendrick and Ellen Burstyn. https://finance.yahoo.com/news/helios-matheson-analytics-launches-moviepass-131000247.html


A recent independent survey by NRG (National Research Group) which was hired by the Hollywood Reporter, strongly supports the comparatively strong customer satisfaction levels of subscribers, as 83% of subscribers are more satisfied with MoviePass than any other subscriber service, with this further supporting and underscoring the tremendous value proposition provided to consumers.


The NRG (National Research Group) report also stated: 41% decide what theater to attend based on MoviePass If their favorite theater chain started their own service, only 18% would definitely switch their service 72% of subscribers would pay more to see a movie in a premium format 84% very likely to recommend MoviePass. MoviePass subscribers are twice as likely to attend movies on opening weekend 83% are seeing more movies than before they were subscribers to MoviePass Subscribers are twice as likely to see the following movies such as, LadyBird, the Post, I, Tonya, Annihilation. 49% are more willing to attend movies alone. Nearly half of all moviegoers are aware of the MovePass service and one third say they are very likely to subscribe once they learn more 49% say they are seeing movies that they wouldn’t normally see in theaters.



Helios and Matheson Analytics Inc. is a provider of information technology services and solutions, offering a range of technology platforms focusing on big data, artificial intelligence, business intelligence, social listening, and consumer-centric technology. Helios currently owns approximately 92% of the outstanding shares (excluding options and warrants) of MoviePass Inc., the nation’s premier movie-theater subscription service. Helios’ holdings include RedZone Map™, a safety and navigation app for iOS and Android users, and a community-based ecosystem that features a socially empowered safety map app that enhances mobile GPS navigation using advanced proprietary technology. Helios is headquartered in New York, NY.



Last month, Maxim analyst Nehal Chokshi upped his bullish sentiment for the HMNY, citing survey results by NRG and positive fundamentals. “HMNY achieved $1.4M from studio marketing & other vs. our estimate of $0.6M and our long-term steady state-run rate of ~$32M/Q, Chokshi said. He added, survey data from 1,500 moviegoers conducted by NRG that is indicative that MoviePass is creating value for studios and exhibitors that ultimately should lead to MoviePass creating a sustainable business.”


Feb-28-18           Reiterated          Maxim Group                  Buy        $25 → $16

Feb-22-18           Initiated              Canaccord Genuity         Buy        $15

Nov-06-17          Reiterated          Maxim Group                  Buy        $20 → $25

Oct-02-17           Initiated              Maxim Group                  Buy        $20


Financial review

Q1 2018:

The company posted quarterly revenues of more than $49 million for 2018 and $1.3M for Q1 2017, an increase of more than 3,700%. Quarterly earnings per share was $.15 basic income per share compared to a loss of ($1.17) per share one year ago.

Revenue                                          $49M

Gross profit                                    (86M)

Operating loss                                (107M)

Net Income                                    5M


Stock influences and risk factors

Continuing increases in revenues and MoviePass subscription rates could act as a catalyst for the company’s shares;

MoviePass has incurred losses since its inception. To continue to support the business objectives of MoviePass, they have a present need for additional funding, which may be unavailable.

MoviePass may not gain acceptance from large national exhibitors (movie theater chains), which could have a material adverse effect on MoviePass’ financial condition and results of operations;

Any material disruption or breach of MoviePass’ information technology systems or those of third-party partners could materially damage subscriber and business partner relationships, and could subject MoviePass to significant reputational, financial, legal, and operational consequences.


Stock chart

On Thursday, June 14, 2018, HMNY was trading at $.38 on traded volume of 6.7M shares. The current RSI (14) is 25.45

At $.38, HMNY shares are trading below their 50 DMA and 200 DMA of $1.55 and $6.73 respectively.



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