AMC Reports Lower Q1 Financial Data, Expects Sluggish Q2

AMC Entertainment stock maintains, surpassing the first quarter’s estimates, but expects a lower Q2 than last year amid delayed movie releases.

On Wednesday, AMC’s stock steadied at $3.91 per share. Meanwhile, it declined by -3.92% to $3.07 apiece in the after-hours session.

Its earnings per share declined to -$0.78 but beat the analysts’ -$0.79 expectations. Still, it is lower than the previous -$0.54 reading.

Also, the company’s revenue dipped to $951.40 million yet is higher than the estimated $861.06 million. Moreover, the data is below last quarter’s $1.09 billion.

The Kansas-based entity noted a $124.10 million boost driven by sales of 38.50 million shares in the current quarter. Additionally, it cut debt principal by $17.50 million in Q1 by exchanging 2.50 million shares.

According to AMC’s CEO, Adam Aron, the Q2 box office will be better than the first three months of 2024. However, last year’s strike will adversely affect its performance, causing a significant slide below the same quarter in 2023.

AMC reported essentially flat quarterly revenue growth, softened by the March launches of movies like the fourth sequel of Kung Fu Panda and Dune.

On the other hand, the company adopted alternative content to increase ticket sales. This effort follows the dual strikes of writers and actors that weakened the launch of a slate of 2024 movies.

Aron Aims for AMC to Acquire Billie Eilish Listing Events

AMC CEO Aron plans on holding a few annual film events, such as the Billie Eilish Listening Event, next week to connect with other theater owners and get exhibitors involved.

The event will be held at various AMC theaters nationwide as her newest album launches, ahead of her Hit Me Hard and Soft: The Tour this coming fall.

Aron said on an earnings call that the triumph of the movie industry last year was driven by Taylor Swift’s and Beyonce’s concert film distribution.

Meanwhile, as AMC faces a $4.50 billion debt, the CEO assured investors that the theater chain has been working with lenders to extend the maturities.