AMC reports its ‘strongest first quarter’ since start of the pandemic

Image for AMC Q1 results

AMC Entertainment Holdings Inc (NYSE: AMC) narrowed its Q1 loss as revenue surged sharply on a year-over-year basis, the theatre chain reported on Monday. Shares are up 7.0% in after-hours trading.

AMC Entertainment Q1 financial highlights

  • Lost $337.4 million in Q1 versus the year-ago figure of $566.9 million.
  • Per-share loss of 65 cents was much narrower than last year’s $1.42.
  • On an adjusted basis, quarterly per-share loss came in at 52 cents.
  • Ended Q1 with $1.37 billion in liquidity, as per the earnings press release.
  • Revenue more than quintupled to $785.7 million in the recent fiscal quarter.
  • Consensus was for 63 cents of adjusted per-share loss on $743.4 million in revenue.

The sharp increase in revenue, however, failed to offset nearly $1.0 billion the cinema company spent in the recent quarter on operating expenses and rent. The stock is down more than 50% for the year.

CEO remains confident for the remainder of 2022

With anticipated titles like Top Gun, Thor, Jurassic World, Black Panther, and Avatar 2 slated for later this year, CEO Adam Aron remains confident that financials will continue to improve moving forward. In the earnings press release, he said:

Our Q1 results represent the strongest first quarter in two full years. The weekend’s opening of Doctor Strange should leave no doubt about the enduring appeal of theatrical exhibition. The outlook for the theatrical box office during the remainder of 2022 is very exciting.

Doctor Strange in the Multiverse of Madness grossed $187 million over the weekend, securing 11th spot on the list of biggest domestic openings of all time.

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Source: https://invezz.com/news/2022/05/09/amc-reports-its-strongest-first-quarter-since-start-of-the-pandemic/