- AMC said all of its domestic theaters were open as of September 30, as were 99% of its international theaters.
- The movie theater chain noted that it welcomed 40 million guests during the third quarter in locations across the US, Europe and the Middle East, thanks to new blockbuster titles and rising vaccination rates.
- During the quarter, AMC saw major improvements in admissions and food and beverage revenue.
Shares of AMC Entertainment fell more than 5% in extended trading on Monday, even as the movie theater operator reported a third-quarter loss that was lower than expected.
“Our financial results continue to improve,” CEO Adam Aron said in a statement Monday. “Anyone can see and feel that our industry and our company are on a path of improvement and improvement. … However, even in the midst of such good news, we are not yet where we want and need to be. “
Here’s what the company reported compared to Wall Street’s expectation, based on a survey of analysts by Refinitiv:
- Loss per share: 44 cents vs. 53 cents expected
- Revenue: $763.2 million versus $708.3 million expected
As moviegoers returned to theaters, AMC posted a net loss of $224.2 million, or 44 cents per share, compared to a loss of $905.8 million, or $8.41 per share a year earlier. According to a survey by Refinitiv, analysts had expected the company to lose 53 cents per share.
Revenue rose to $763.2 million from last year’s $119.5 million, and $708.3 million was expected by analysts.
The company’s stock jumped initially after better-than-expected results. However, the shares soon changed direction, as investors saw further challenges ahead. Shares of AMC have been at the center of this year’s meme stock craze, which skyrocketed more than 2,025% in 2021.
AMC said all of its domestic theaters were open as of September 30, as were 99% of its international theaters. The company said that 40 million guests watched the movies during the third quarter, up from 22 million in the second quarter, due to new blockbuster titles like “Shang-Chi and the Legend of the Ten Rings” and “Free Guy” and increased vaccinations. rates.
During the quarter, the company saw an increase in admissions revenue to $425.1 million from $62.9 million in the year-ago period. Its food and beverage sales also increased from just $29.1 million to $265.2 million on a year-over-year basis.
Still, AMC’s operating costs outpaced its revenue, leaving the company with a loss for the quarter.
“We want to emphasize that no one should be under the illusion that there are no more challenges ahead of us,” Aaron said. “The virus remains with us, requiring us to sell more tickets in future quarters than we did in the most recent quarter, and adjusted EBITDA still well below pre-pandemic levels.”
At the end of the third quarter, AMC had more than $1.8 billion in liquidity, which included cash and undrawn revolving credit lines. Aaron said the company does not anticipate borrowing under those loans in the next 12 months.
This liquidity has allowed AMCs to explore and incorporate new revenue streams. The company has already acquired new theater leases, started offering new content such as concerts and sporting events, and is expanding into the popcorn retail business.
The company said last quarter that it would like to offer new payment options such as bitcoin. On Monday’s earnings call, Aron said that AMC continues to look at other cryptocurrencies that it may accept and has talked with third parties about launching its own cryptocurrency.