AMC
Entertainment beat expectations for the third quarter, getting a boost from this summer’s blockbuster movie phenomenon known as Barbenheimer.
The two movies opened at the beginning of the theater chain operator’s third quarter and went on to rule the summer. Barbie, by Warner Bros., has brought in $1.4 billion in worldwide box office sales since July 19, according to BoxOfficeMojo.com, while Universal’s Oppenheimer has sold $948 million worldwide.
The movie theater operator reported a loss of 9 cents a share and revenue of $1.41 billion, up 45% from the same time a year ago. Analysts expected AMC (ticker: AMC) to report a loss of 25 cents a share on revenue of $1.26 billion.
AMC said for revenue and adjusted earnings before interest, taxes, depreciation, and amortization, it was the most successful third quarter in its 103-year history. Adjusted Ebitda was $193.7 million compared with a loss of $12.9 billion one year ago.
CEO Adam Aron said the success comes even as the domestic audience is still 16% below 2019 levels, with gains largely coming because AMC is now getting 30% more from each moviegoer through food and beverage sales and the closing of marginal theaters and the opening of new more successful ones.
Aron did say that the short-term effects of the Hollywood writers’ and actors’ strikes will cause additional challenges in 2024
The quarter’s results don’t include proceeds from Taylor Swift: The Eras Tour, which didn’t open in AMC theaters until after the third quarter ended. Aron recently said in a social media post that more than 10 million people had seen the concert movie, crossing $200 million in global box office. AMC is the distributor.
The third quarter included a 1-for-10 reverse stock split, followed by the conversion of APE preferred shares to common stock, and then the sale of 40 million shares, raising $325.5 million. AMC said the stock sale significantly increased its cash reserves. It ended the quarter with $730 million of cash, Aron said.
Shares of AMC fell 0.4% in after-hours trading. They are down 71.9% so far this year.
Write to Liz Moyer at [email protected]
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