SALT LAKE CITY — MoviePass reportedly lost more money in 2018 than it originally reported, according to Variety.
What happened: Helios & Matheson Analytics Inc., the parent company of MoviePass, said in a new filing that it had a net loss of $146.7 million in the third-quarter ending in September 2018 opposed to the $137.2 million it had initially reported.
- The company said it suffered a $93 million in losses from operations instead of $86.4 million in that time.
- The company said it also had originally had a net loss of $246.9 million in the first three fiscal quarters for 2018, but revised it to be $256.4 million.
- Helios & Matheson originally reported third quarter revenues to be $81.3 million and revenues of $204.9 million for the first three quarters of 2018. The new filing restated those numbers as $74.7 million for the third quarter and $198.3 million for the first three quarters.
Reasons: The company said it “incorrectly recognized” close to $5.9 million in revenue from subscriptions that had previously been suspended, according to Bloomberg.
- Similarly, the company filed that another error of about $700,000 came from the company recognizing subscriptions from Costco Wholesale Corp. that had also been terminated due to refunds.
- These changes to the company’s third-quarter results widened their net loss to $138.5 million total.
- MoviePass isn’t sure how many subscribers it has anymore, Bloomberg reports. The company said it had “a material weakness in its internal financial controls for subscription management,” according to Bloomberg. The company added a new account software at the beginning of 2019, though.
Bigger picture: MoviePass became an internet darling two years ago after its subscription model — $9.99 a month for unlimited movie theater tickets — went viral. Of course, the company ended up suffering major losses that resulted in restructuring its plan.