AMC Theaters closed out 2024 with another quarter in which it cut its losses and reduced its debt, meeting Wall Street projections with $1.3 billion in revenue as it hopes to get out of the red in 2025.
The revenue was driven by a holiday season primarily supported by Disney’s “Moana 2” and Universal’s “Wicked,” with additional support coming from movies like “Venom: The Last Dance,” “Gladiator II,” “Sonic the Hedgehog 3” and “Mufasa.”
Topline results for the quarter are as follows:
EPS: AMC reported a quarterly loss of $135.6 million, or an adjusted loss of 36 cents per share. That’s below the 16 cents per share loss projected by Zacks Investment Research but improves on the 83 cent loss per share in Q4 2023. Adjusted EBITDA came in at $164.8 million, more than triple the $47.9 million from a year prior.
Full year earnings came in at an annual net loss of $352 million and a loss of $1.06 per share, improving from $396 million and $2.37 per share loss in 2023.
Admissions: AMC reported $721.4 million in admissions revenue from 62 million tickets sold, a new post-COVID shutdown high for Q4 and a 20% year-over-year increase.
Concessions: Driven in part by more family friendly offerings during the holiday season like “Wicked,” “Mufasa” and “Sonic 3,” per patron spending reached a new company record of $7.15. Among the chain’s patrons in the United States, that figure increases to $8.21
“Naturally, we are pleased by our impressive finish to the year. We also take comfort as a result of the decisive actions we took during 2024 to strengthen our balance sheet, lower our debt levels, bolster our cash reserves and continue to position AMC to thrive as the box office grows,” CEO Adam Aron said in a statement.
“Over the course of the year, AMC reduced its debt obligations by more than $375 million, and we ended the year with more than $630 million of available cash,” Aron continued.
With the March box office expected to see a decrease from last year’s $749.3 million, Q1 2025 is likely to be another negative quarter for AMC. But the chain is hoping to post a profit in the summer quarters thanks to a loaded slate that includes “Lilo & Stitch,” “Jurassic World: Fallen Kingdom,” and “Superman.”
In anticipation of an improved theatrical market, AMC has previously announced its plans to install more premium format screens in its auditoriums, primarily through an in-house format called AMC XL, which will be rolled out in 50-100 locations in the coming year.
More to come…
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