PROFITABILITY CASE ANALYSIS

Regal Entertainment, Inc. (formerly and more commonly known as Regal Films)
is a Philippine film production company based in Pasig. It was founded by Lily
Monteverde on August 19, 1962. It has produced movies of all genres; and is the oldest
surviving movie studio in the Philippines. The CEO of Regal Entertainment Inc. has
contacted your organization to determine which film the business should release next
after a poor summer loaded with a number of box office duds. While based in the
Philippines, Regal Entertainment Inc. releases its films in many important international
markets. They receive a portion of the ticket sales and have a distribution network of
both domestic and foreign theaters. They have been in the industry for the last ten years
and have a fantastic selection of films in many genres. The film business has been
devastated by the COVID-19 outbreak. Despite not having a big success over the
summer, the corporation still has a lot of investor-funded cash reserves.
However, the board has stated that they anticipate a hit soon, failing which the
CEO would start searching for employment elsewhere. After the recent failures, the
board is worried about ROI and has defined a hit as a movie with a ROI of greater than
50%.

Regal Entertainment Inc. movie options:

Movie Name Genre Total Production Cost Estimated Theatre
(Millions) in Pesos Attendance (in %)
The Juanderers Comedy 90 80
Maybe the Night Drama 100 75
Hold Me tight Action 50 60
Your Lie at May Anime 100 80

TABLE 2
Global Movie Industry Statistics

The candidate should be aware that without knowledge about the theater's seating
capacity and ticket prices, they cannot conduct a profitability study. When the candidate
requests the aforementioned details, table 3 is made available. Only provide when
requested; assume revenue for 30 days.
Global Theater Statistics
Theater Type Regal Inc. Revenue No. of Shows per No. of Seats/
per ticket day Show
International P100 5 400
Domestic P150 10 200
REGAL ENTERTAINEMENT INC. REVENUE FROM EACH THEATRE TYPE
Theater Type LCA No. of No. of Monthly earnings
Revenue per Shows per Seats/
ticket day Show
International P100 5 400
Domestic P150 10 200