AMC Entertainment has reduced its latest quarterly loss on higher overall revenue as the movie giant appears to be making a profit at the Hollywood box office.
The parent company of AMC Theaters posted a first-quarter loss of $337.4 million, or $0.65 a share on total earnings of $785.7 million. This is an improvement from the previous year, when AMC reported a net loss of $567 million in the first quarter on revenue of $148 million.
AMC met the Zacks Consensus Estimates forecast for 65 shares, which was 54.23% higher than a year ago, and beat the quarterly earnings estimate of $724.47 million, which is 388.51% higher than in 2021.
Shares of AMC, Retail, Precious, rose 28 cents, or just 2%, to $12.80 in aftermarket trading as investors learned to profit from a movie theater chain returning to the multiple of consumers as that the pandemic subsides.
Before the market closed, AMC shares were down $1.25 or 9 percent as they fell against the dollar.12.52 this day. Last quarter, AMC saw similar trending gains Spider-Man: No Way Home, Batman s sonic the hedgehog 2 playing on your screens.
During the post-earnings conference, Adam Aaron, President and CEO of AMC, He used most of his defined expressions at Hollywood’s soaring box office, including last weekend’s opening. Dr. Strange in many worlds of madness – As proof of the constant attractiveness of theatrical exhibition to consumers.
Aaron predicted that Hollywood box office will reach or approach ticket acceptance levels in the fourth quarter of 2022. Nonsense and so many mistakes”, he argued.
At the same time, AMC is trying to diversify the Hollywood box office balance by tapping into new revenue streams such as AMC-branded popcorn, cryptocurrencies, alternative content like WWE and UFC events at AMC theaters. , and even the acquisition of sports rights.
Aaron told investors that AMC would not fully recover if it simply reverted back to its pre-pandemic business model as a showcase of pure performance films. “There are a lot of opportunities when we build a new AMC or grow our unit with value-added initiatives,” he said, while Aaron cited a lucrative deal to buy 22% of Hycroft Mining Holding Corp’s gold and silver. distant. Mining company.
He added that AMC will continue to buy new movie screens through 2022 as it uses more than $1 billion worth of warheads to strengthen the company. Recently, the exhibitor continued the pleasure of buying rooms with the 66 screens of 7 former Bow Tie cinemas.
Aaron hinted at AMC’s return after ongoing negotiations with potential film industry partners. “I must say that there is a lot of talk right now with different filmmakers about whether we should repeat our activity of creating our own content in previous years… that’s what we’re focusing on.”
AMC’s stock has been in the spotlight since the company used its meme-sharing status on Reddit and other social media hubs, thanks to fraudulent retailers to raise cash on a hefty market bond to ensure the survival of the pandemic and pay the debt. .
During a conversation in which Aaron did not respond to questions from Wall Street analysts, he praised the company’s enthusiasm for retail investors. But Aaron also pointed to potentially dangerous shareholders who attacked the AMC boss with malice or worse.
“While most (advice) are constructive, some are hostile or threatening. “Most of them have good intentions, but some of them may have been shot with the intent to harm me or the company, perhaps from short-term suppliers or motivated by malicious intent,” Aaron said.
Elsewhere, amid the reopening of theaters across the industry, film advertising network National CineMedia saw its total revenue rise sharply to $35.9 million in the three months to March 31 from $5.4 million. million a year earlier.
Meanwhile, National CineMedia saw its quarterly net loss attributable to shareholders increase to $25.2 million, up from $19.4 million a year ago. The culprit buys flimsy advertising for its cinemas.
“While the network’s share has increased substantially, it has remained below historic Q1 levels, largely due to a reduction in the number of movies released by approximately 57% compared to Q1 2019. Fewer movies and lower share across the industry has led to decreased advertising in theaters. Nacional CineMedia said in a statement when it presented its latest financial results after the market closed on Monday.
Source: Hollywood Reporter
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
