AMC Theatres Trims Quarterly Loss, Overall Revenues Rise

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The resurgence of the box office in Hollywood, driven by blockbusters such as “Wicked,” “Gladiator II,” and “Moana 2,” has been beneficial for AMC Entertainment Holdings, which had been struggling, and has helped to boost their underperforming stock prices.

Last Tuesday, AMC Theatres‘ parent company reported a reduced net loss for the fourth quarter, amounting to $135.6 million. This is a significant improvement compared to the net loss of $182 million from the previous year, with the latter figure including a non-cash impairment charge on long-lived assets totaling $106.9 million.

Last Tuesday, AMC Theatres’ parent company announced that they had a smaller net loss in the fourth quarter compared to the previous year. This lower loss was due to better performance and not just because of a non-cash charge related to long-term assets, which was a part of last year’s larger loss.

The movie theater chain announced total earnings of approximately $1.3 billion for the quarter, which is an increase from the same period last year’s $1.1 billion. This figure aligns with analyst predictions, as per a consensus on Benzinga Pro, estimating fourth quarter revenues to be around $1.3 billion.

Last year, the majority of box office earnings were primarily from Taylor Swift and Beyonce concert movies since the world’s largest exhibitor faced a limited selection of Hollywood blockbusters (tentpoles). However, this year, with major studios prioritizing theater releases post-pandemic, there has been a continuous recovery in North American cinema ticket sales.

In the final quarter of the year, admission revenue reached an impressive $721.4 million, marking an increase from $614.6 million during the same period in the previous year. Moreover, food and beverage revenues hit a significant $446.2 million, surpassing the $370.2 million recorded in the corresponding quarter of 2023. Notably, AMC reported an all-time high average food and beverage sales per customer at $7.15 during this period, just slightly higher than the previous year’s fourth quarter figure of $7.13.

The major movie company announced that it welcomed 62.4 million cinema visitors worldwide this year, marking an increase from 51.9 million attendees during the same time last year due to a box office recovery. In the U.S., AMC entertained 42.95 million cinema-goers, compared to 35.4 million the previous year. Globally, AMC’s theaters were visited by 19.46 million patrons, as opposed to 16.4 million during the same period last year.

In the last three months (fourth quarter), the cinema chain reported a smaller loss per share that was diluted, amounting to 35 cents. This is an improvement compared to the diluted loss per share from the same period the previous year which stood at 83 cents.

Of course, we’re elated with our strong year-end performance. Additionally, we feel reassured due to the strategic moves we made throughout 2024, which helped us fortify our financial standing, reduce our debt, and increase our cash reserves,” AMC Theatres CEO Adam Aron expressed in a statement following the announcement of his fourth quarter financial results.

Despite the major exhibitor failing to significantly reduce its overall debt burden, AMC Entertainment Holdings’ shares have been underperforming compared to industry counterparts. On Tuesday, AMC Entertainment’s stock ended the day at a decrease of 9 cents or 2.7%, closing at $3.27. However, after market hours, AMC Entertainment’s shares rose by 5% or 20 cents, reaching $3.47.

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2025-02-26 00:54