AMC reports first-quarter loss with fewer studio film releases
AMC Entertainment Holdings, the largest movie-theatre chain, reported a first-quarter loss, the result of a thinner slate of releases from Hollywood studios after last year’s strikes by writers and actors.
The loss in the period, excluding some items, narrowed to 78 US cents a share and compared with the 79 US cent loss that analysts were projecting. Revenue was little changed at US$951.4 million, beating Wall Street estimates as the company gained market share from competitors.
Average ticket prices rose globally, while drinks and popcorn spending per guest eased, AMC said on Wednesday (May 8). The company reported preliminary first-quarter results in April.
Shares of AMC were down about 1.9 per cent to US$3.13 in extended trading after the results were announced.
“We had expected for some time the Hollywood actor and writer strikes of 2023 would impact the first quarter box office but were heartened by the strength of moviegoing in March, which reminded us that better times are ahead,” chief executive officer Adam Aron said.
Despite fewer releases from major film studios, hits including Dune: Part Two and Kung Fu Panda 4 helped AMC and rivals such as Cinemark Holdings beat estimates during the period.
A key focus of investors has been AMC’s finances. The company finished the quarter with US$624.2 million in cash and equivalents, down from US$884.3 million three months earlier.
The world’s largest cinema chain is in talks with its creditors as it wrestles with about US$4.5 billion in debt, including more than US$2.8 billion of maturities in 2026. A lender group to AMC advised by Gibson Dunn & Crutcher made a proposal to the company in April that would push back its near-term debt obligations, Bloomberg reported in April. BLOOMBERG
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