12:40 PM EDT, 07/08/2024 (MT Newswires) -- Second-quarter domestic box office revenues came in lower than expected because of a relatively thin film slate tied to production delays from last year's Hollywood strikes, B. Riley Securities said in a note emailed Monday.

Box office collections totaled $1.95 billion for the just ended quarter, representing an annual decline of roughly 27%, and below B. Riley's $2.35 billion estimate. The brokerage attributes the weaker-than-expected results to a sparse film schedule caused by production delays from the actors and writers' strikes, rather than changes in movie-going behavior or studios locking out theaters from key releases.

The second-quarter box office had "more than its share of disappointments," such as "Furiosa: A Mad Max Saga," "IF," and "The Fall Guy," B. Riley analyst Eric Wold said in a note.

Trends, however, are expected to improve in the second half as the impact of production delays eases and highly-anticipated films reach theaters, Wold said. "While the production delays adversely impacted the recent recovery path for the domestic box office, we remain positive on the underlying demand trends from individual films across a variety of genres and project a renewed path upward in 2025 and beyond."

People are turning to premium auditoriums, suggesting a desire to escape streaming platforms, Wold wrote.

B. Riley lowered its domestic box office outlook for 2024 to $8.2 billion from $8.5 billion, reflecting the weak second-quarter performance, along with a "slightly more optimistic view" around the subsequent two quarters. For 2025, the brokerage now estimates $9.7 billion in box office proceeds versus its prior projection of $9.9 billion, but it remains "extremely positive" about a rebound.

B. Riley reiterated its buy ratings on Imax ( IMAX ) , Marcus (MCS) and National CineMedia ( NCMI ) stocks. It reaffirmed AMC Entertainment's ( AMC ) neutral rating and upgraded Cinemark (CNK) to buy from neutral.

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