LEAWOOD, Kan. - AMC Entertainment (NYSE:AMC) Holdings, Inc. (NYSE:AMC) has announced record-breaking attendance and admissions revenue at its AMC Theatres in the U.S. and ODEON Cinemas worldwide. Over 6 million moviegoers visited the company's theaters from Thursday through Sunday, driven by the unprecedented opening of Disney and Marvel's "DEADPOOL & WOLVERINE."
The film not only set a new industry-wide record with a reported $205 million domestic gross but also established new benchmarks for R-rated movies at AMC locations, including the highest opening weekend attendance and admissions revenue in the company's history.
The company experienced its most lucrative weekend for food and beverage sales in the U.S. since 2019, bolstered by record sales at AMC's in-theatre MacGuffins bars. The sale of alcoholic beverages reached an all-time high for any weekend in AMC's history.
Merchandise tied to "DEADPOOL & WOLVERINE" also saw overwhelming success, selling out completely over the weekend. The film's merchandise has now surpassed "DESPICABLE ME 4" to become AMC's top revenue-generating merchandise program of the year and the second-highest in the company's history, following the merchandise for the "TAYLOR SWIFT | THE ERAS TOUR" concert film.
AMC Chairman and CEO Adam Aron attributed the impressive turnout to a strong summer movie slate, expressing pride in the company's achievements and acknowledging the role of Disney and Marvel in delivering an engaging theatrical experience.
AMC Entertainment is recognized as the largest movie exhibition company globally, with approximately 900 theaters and 10,000 screens. The company has been at the forefront of innovation in the exhibition industry and continues to expand its offerings, including the launch of AMC Theatres Distribution in 2023.
AMC Entertainment has reported preliminary financial results for Q2 2024, expecting a significant decrease in total revenues to approximately $1,030.6 million and a net loss of about $32.8 million. This is a notable contrast to the same period last year when the company reported net earnings. AMC has also recently negotiated a refinancing agreement, extending the maturity of up to $2.45 billion in debt from 2026 to 2029.
Analyst firms have provided their insights. B.Riley reaffirmed its Neutral stance on AMC, acknowledging the company's efforts to alleviate its debt burden. However, Roth/MKM maintained a sell rating due to concerns about AMC's substantial debt and limited cash flow projections.
InvestingPro Insights
While AMC Entertainment Holdings, Inc. (NYSE:AMC) celebrates its box office success, the financial landscape presents a mixed picture according to recent data. As of the last twelve months, AMC's market capitalization stands at approximately $1.91 billion, reflecting the scale of its operations in the movie exhibition sector. Despite the record-breaking weekend, the company operates with a significant debt burden and is quickly burning through cash, as noted in two of the InvestingPro Tips for AMC. This financial strain is further evidenced by the company's negative P/E ratios, with the latest figure at -6.57, and a gross profit margin of 14.56%, which indicates challenges in profitability.
On a more positive note, revenue growth over the last twelve months was 17.88%, showing a healthy top-line expansion. However, the quarterly revenue growth dipped slightly by -0.31%. For investors looking for short-term gains, it's worth noting that AMC's stock price has seen a strong return over the last three months, surging by 70.96%. Nevertheless, analysts have tempered expectations, as they do not anticipate the company will be profitable this year, and the stock price has fallen significantly over the last year, with a -87.35% return.
For those considering an investment in AMC, there are 14 additional InvestingPro Tips available that provide deeper insights into the company's financial health and market performance. These tips can be accessed through the InvestingPro platform at https://www.investing.com/pro/AMC. Prospective users can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking a wealth of financial analysis and market data.
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