By
Chimamanda U. Martha
January 18th, 2024
The impressive financial results AMC Entertainment recorded in the first quarter were based on the release of blockbuster movies that people actually wanted to see.
The earnings season has continued with AMC Entertainment Holdings Inc (NYSE: AMC) recording its best quarter since the coronavirus pandemic hit the world. In its Q1 earnings report, the cinema and entertainment company reported a revenue of $785.7 million compared to the $148.3 million it recorded for the first quarter of 2021.
Net loss improved dramatically to $337.4 million compared to a net loss of $567.2 million for the first quarter of 2021. This net loss came in at 52 cents per share as against the 63 cents per share analysts profiled by Refinitiv were expecting the company to lose during the first quarter.
“Our results for the first quarter of 2022 represent AMC’s strongest first quarter in two full years,” said Adam Aron, Chairman, and CEO of AMC. “We continue on our pandemic recovery trajectory, more than quintupling revenues and improving adjusted EBITDA by nearly eighty percent compared to a year ago. The significant progress AMC has made is very rewarding, as our guests continue to recognize the unparalleled movie-going experience offered by AMC.”
The company’s EBITDA improved by $233.0 million to a loss of $61.7 million compared to a loss of $294.7 million for the first quarter of 2021. With the company’s improved performance across the board, the Leawood Kansas-based firm had as much as $1.376 billion in extra liquidity at hand as of the end of March 2022.
Despite the losses recorded by the company, it saw its shares grow by a mile when compared to the comprehensive bearish slump that has been engulfing the market in the past few days. After closing Monday’s session at $12.52 per share, down 9.01%, AMC has seen a 5.75% growth in the Pre-market, a move that shows investors’ appreciation of the firm’s current outlook.
AMC Entertainment and Its Blockbuster Deals
The impressive financial results AMC Entertainment recorded in the first quarter were based on the release of blockbuster movies that people actually wanted to see. These include Spider-Man: No Way Home, The Batman, and Sonic the Hedgehog 2 amongst others.
“The cumulative success of Spider-Man: No Way Home, The Batman, Sonic the Hedgehog 2 and this past weekend’s opening of Dr. Strange in the Multiverse of Madness, should leave no doubt about the enduring appeal of theatrical exhibition. When Hollywood releases films that moviegoers want to see, people flock to cinemas in huge numbers to watch movies where they were designed to be seen, in theatres, on the big screen,” the company wrote.
From its report, the company welcomed nearly 40 million visitors in the first quarter as people thronged the firm to experience the thrill of the released movies. The firm has a very positive outlook for the current quarter as a number of titles are already being released including Dr. Strange in the Multiverse of Madness which was released this past weekend.
Other movies in the works include Top Gun: Maverick, Jurassic World Dominion, Lightyear, Thor: Love and Thunder, Minions: The Rise of Gru, and Black Panther: Wakanda Forever.
With this current movie expectation, the company is positive it will see a more ambitious growth outlook this quarter and for the rest of the year.