Shares of AMC Entertainment surged 14% during Monday’s trading session after second-quarter revenue surged 14% to $1.59 billion, driven by a box office rebound.
The figure marked the movie theater chain operator’s highest quarterly revenue in its 106-year history. It also posted record adjusted EBITDA of $359.7 million, an increase of 172.9%. However, AMC also reported a widened net loss of $11.4 million, compared to a loss of $4.7 million a year ago.
During the second-quarter, the industry-wide domestic box office reached approximately $2.99 billion, a 10.7% year over year increase — the biggest box office quarter in seven years and fifth biggest quarter ever. In comparison, AMC’s domestic revenues grew 13% year over year. Over half of AMC’s total U.S. guest count during the quarter were Stubs members, with more than 40 million households participating in the loyalty program.
“This weekend’s powerful debut of Universal Pictures and Christopher Nolan’s The Odyssey with an encouraging media reported $124 million domestic opening, is the latest reminder of the strength of today’s theatrical marketplace. It follows a second quarter in which six different films delivered impressive domestic opening weekend grosses exceeding 75 million,” AMC Entertainment CEO Adam Aron said in a statement. “That outstanding debut of The Odyssey will be followed a mere two weeks from now by Sony’s highly anticipated Spider-Man: Brand New Day, for which advance bookings suggest yet another box office triumph is at hand.”
Aron predicted that movie theaters will enjoy their strongest yet post-pandemic year at the global and domestic box office in 2026 when factoring in “Dune: Part 3” and “Avengers Doomsday.”
Looking ahead, AMC will continue to add premium large format and XLF screens, with the goal of increasing those total counts by 100 and 250 more auditoriums over the next two to four years.
In addition to the box office rebound, Aron touted the company’s efforts to control costs.
During the second quarter, it refinanced $400 million in debt to extend their maturity by four years, raised $285 million of gross proceeds through equity offerings and eliminated or initiated eliminations of approximately $282 million in debt. Together, these actions reduced its principal debt balances by approximately $1.7 billion, with no expected debt maturities until 2029.
“We’re going to do everything in our power to maximize and drive revenue growth and keep costs under control,” Aron told analysts on Monday.
More to come…
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