June 1, 2023

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AMC is positive about the box office rebound as Ant-Man lifted the quarter

May 5 (Reuters) – AMC Entertainment Holdings Inc (AMC.N) on Friday provided an optimistic assessment of this year’s box office recovery, after beating quarterly revenue estimates as films including the latest installment of “Ant-Man” lured moviegoers into theaters. .

Cinemas are beginning to see a rebound in foot numbers after an uneven recovery from the lowest levels of the pandemic, thanks to a steady stream of movie releases during the year.

“We couldn’t be more optimistic about the box office prospects for 2023, except to say that 2024 looks better,” CEO Adam Aron said.

Shares of the world’s largest operator of cinema chains rose 0.5% in choppy trading, after rising more than 4% before the bell. The stock, a favorite of retail investors, is up more than 45% so far this year.

Peer Cinemark Holdings Inc (CNK.N), earlier in the day, reported a 33% increase in revenue for the first quarter, driven by a stronger-than-expected performance at the box office.

AMC also noted a boost to the current quarter release of the Super Mario Bros. movie. She said she expects “The Little Mermaid,” “Guardians of the Galaxy Vol.3,” and “Spider-Man: Across “The Spider-Verse” to hit box office sales for the rest of the year.

Revenue from the world’s largest cinema chain operator rose 21.5% to $954.4 million in the first quarter, beating expectations of $948.5 million, according to Refinitiv data.

AMC has been experimenting with different packages to attract audiences, including options that allow moviegoers to choose seating options that match their viewing preferences.

“As moviegoers continue to move toward premium screens and franchises, it makes sense that as volume returns to normal, revenues at the theater level could exceed pre-pandemic levels,” said Wedbush analyst Alicia Rees.

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On an adjusted basis, AMC lost 9 cents per share, compared to expectations for a loss of 16 cents.

Additional reporting by Tyachi Datta and Yamini Kalia in Bengaluru; Editing by Anil D’Silva

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