AMC Earnings


Thanks to the success of “Top Gun: Maverick” and other early summer blockbuster hits, AMC has reached Wall Street revenue projections with $1.14 billion reported for Q2 of 2022. But with the chain still spending more than its making, AMC reported a net loss of $121 million for the quarter.

That amounts to an adjusted loss per share of 24 cents, up from 52 cents last quarter and 71 cents in Q2 2021. Attendance rose to just over 59.1 million tickets sold worldwide, with 43 million coming from American theaters, up from 25.7 million tickets domestic and 39 million tickets worldwide last quarter.

AMC’s increased spending comes largely from acquisitions of new theaters, implementation of COVID-19 safety protocols, and efforts to reduce its $5.5 billion debt load. The company has also made unconventional moves under CEO Adam Aron, including buying a minority stake in precious metals mining company Hycroft.

“While our reported losses will continue to be impacted by market price volatility, we continue to believe strongly in the potential value of our $28 million Hycroft Mining investment. In fact, Hycroft just announced it would commence its largest drilling exploration program in nearly a decade, and we have every confidence that over time our investment in Hycroft will pan out to be golden,” Aron said in a statement.

Theaters enjoyed a strong domestic box office total of $2.32 billion from April to June, driven by “Top Gun: Maverick” becoming the highest Memorial Day opening weekend ever and grossing over $1.3 billion worldwide to date. Other big Q2 hits included “Jurassic World: Dominion” and “Doctor Strange in the Multiverse of Madness” with a combined $726 million while “Sonic the Hedgehog 2” contributed $190 million thanks to resurgent family turnout.

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AMC’s stock has risen 34% over the past week to $19.18/share, its highest since early April. But the chain along with the entire industry faces a significant box office downturn over the next two months, as last weekend saw overall grosses slip below $100 million for the first time since mid-May. Currently, no film through the end of September is projected to earn an opening weekend of over $25 million.

More to eat…


Reference-www.thewrap.com

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