AMC Entertainment has announced an increase in second quarter revenue from last year. The company said they are up over 16% with a revenue of $1.348 billion, surpassing predictions from Wall Street and making a return to profitability.
Additionally, it transitioned from a loss of 12 cents per share in the second quarter of 2022 to a profit of 1 cent per share. Analysts had anticipated revenue of $1.29 billion along with a loss of 4 cents per share. Pre-market trading saw shares of the theater owner rise by 4%, reaching $5.35.
While the second quarter, ending on June 30, didn't cover the bustling month of July and the Barbenheimer phenomenon, it did observe an upward trend for theater owners as they persist in their efforts for a post-Covid recovery. AMC noted a 12% year-on-year rise in attendance during the quarter, reaching a total of 66.4 million attendees. Furthermore, the total domestic box office surged by 22% beyond the 2022 levels by the end of July, surpassing $6 billion.
After the conclusion of Tuesday's trading, AMC Entertainment's executives are slated to discuss the quarterly results through a conference call with Wall Street analysts.
In the company's earnings release, CEO Adam Aron communicated that $34 million in cash was generated in the quarter via the sale of preferred equity "APE" units, leading to a reduction of $42 million in debt.
Pointing out the impact of the writers' and actors' strikes, which have presented another hurdle for the theaters' resurgence narrative, Aron commented that the circuit could encounter a shortage of funds if equity capital couldn't be secured. In an open letter to investors, he emphasized the seriousness of the risk of financial collapse, especially given a court ruling that imposed constraints on AMC's maneuvers.
