As a long-time AMC Theaters enthusiast with countless memories of blockbuster movie premieres and popcorn-filled evenings, I can’t help but feel a mix of emotions upon reading this latest financial report. While it’s disheartening to see the dip in revenues and net loss for Q3 2024, as a loyal patron, I have faith that the upcoming movie slate will bring us back to the golden days of packed theaters and box office success.
AMC Entertainment Holdings experienced a drop in their third-quarter earnings and switched to reporting a net loss, primarily due to the screenings of movies like “Deadpool & Wolverine” and “Inside Out 2”.
On Wednesday, AMC Theatres‘ parent company announced total earnings of $1.34 billion, representing a 4.1% decrease from the previous year’s $1.4 billion. This decline occurred despite increased cinema attendance, which was bolstered by films like Oppenheimer and Barbie. As a result, total ticket sales dropped to $744.2 million, compared to $798 million in the same period last year. However, this decrease was compensated by an uptick in food and beverage revenues, which reached $490.4 million, up from $482.7 million during the same timeframe last year.
In the third quarter of 2023, AMC Theatres, the country’s largest cinema chain, debuted The Taylor Swift: The Eras Tour. Despite this high-profile release, the company reported a net loss of $20.7 million – a significant shift from the profit of $12.3 million it made during the same quarter in the previous year. This translated to a diluted loss per share of 6 cents, compared to a profit of 8 cents per share in the same period last year.
The recent data from AMC Theatres offers a glimpse into how their domestic and European branches are performing during the broader resurgence of the Hollywood box office post-pandemic.
Indeed, our third quarter results from 2024 fell short of those from the previous year. Nevertheless, we are incredibly optimistic about the blockbuster movie lineup set to hit our cinemas in November and December of 2024, and extending into 2025 and 2026. Given this information, we anticipate a significant boost in overall box office revenue towards the end of this year and a further increase for the next two years,” Adam Aron, CEO of AMC Theatres, stated.
Last week, Cinemark, one of the three largest U.S. theater chains by number of locations, announced a 5.4% increase in third-quarter revenue, reaching $921.8 million compared to the same period last year. On the other hand, Cineplex, a major Canadian cinema company, reported a 4.6% decrease in third-quarter revenues this week, with earnings amounting to $395.6 million, down from $463.5 million during the corresponding quarter of the previous year.
AMC is additionally seeking the ability to broadcast live music events and sports on their large screens. This move reflects the cinema giant’s efforts to expand beyond its typical focus on films, as the larger movie exhibition industry shifts towards a broader approach that minimizes dependence on major Hollywood blockbusters.
In the last quarter, AMC Theatres reported approximately 65.1 million visitors, marking a decrease of 11.5% compared to the 73.5 million visitors during the corresponding quarter in 2023. Specifically, U.S. theaters welcomed around 46.9 million visitors, which is a drop from the 51.5 million patrons seen in the same period of the previous year. Meanwhile, international locations hosted about 18.1 million visitors during Q3, representing a decrease from the 22 million visitors during the same quarter in 2023.
The movie theater chain’s stocks have experienced significant fluctuations, rising and falling, since 2021, mainly due to retail investors on Reddit promoting the company’s stocks as a popular meme investment. At one point in 2021, the value of AMC shares skyrocketed to $35 as a result of online trading activity.
Due to the frenzy surrounding meme stocks, AMC Theatres has been able to secure new funds through stock sales, providing a much-needed financial rescue. On Wednesday, AMC’s shares dropped by 24 cents, approximately 5%, to $4.34 in post-market trading after releasing its Q3 financial data.
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2024-11-07 00:55