Regal Entertainment Group, the world's largest theater operator, said first-quarter profit declined 23% on rising film rental and advertising costs.
Net income fell to $21.3 million, or 14 cents a share, from $27.5 million, or 17 cents, a year earlier, the company said. Sales rose 6.2% to $665.6 million.
Admissions at theaters in the U.S. and Canada rose 10% during the quarter, boosting sales 12% to $2.38 billion, according to researcher Media by Numbers. Admissions at Regal overall increased 6.4% to $459.5 million.
Regal operates Regal Cinemas as well as United Artists Theatres and Edwards Theatres.
Shares of the Knoxville, Tenn., company fell 29 cents, or 2.2%, to $13.06.
