AMC Entertainment Holdings Inc. posted a narrower quarterly loss, beating analysts' estimates with results that nonetheless underscore the movie industry's struggle to draw fans back to cinemas and compete with streaming options at home.
The world's largest theater chain, struggling under $5.5 billion in corporate borrowings, said Monday its loss shrank to 71 cents a share, excluding some items, better than the 94-cent loss analysts were predicting. Revenue soared to $444.7 million from virtually nothing a year ago and was better than the $382.3 million that Wall Street expected.
The company said customers are returning after the business collapsed in 2020, with the coronavirus raging worldwide and forcing theaters to close. AMC recently set several pandemic-era attendance records and sold 22 million tickets in the second quarter, compared to about 100,000 in the same period a year ago.
According to the chain, if the recovery continues, the domestic box office could grow to more than $5 billion this year, meaning AMC might be cash-flow positive by the fourth quarter.
AMC stock soared in post-market trading, rising as much as 10% to $37.20 before paring gains. The company has swollen in market value due to a dedicated online army of retail stock traders. The chain may take Bitcoin payments by the end of the year and liked their suggestions to play concerts and sporting events in theaters.
After investors rejected AMC's plans to issue new equity, The CEO said part of his growth plans relies on raising prices. Both ticket and refreshment prices are up, and the chain expects further increases while it awaits a broader return to theaters in 2022 or 2023. Though attendance continues to rise, the chain sold about a quarter of the tickets it did in the second quarter of 2019, before the pandemic.
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