Cinema chain AMC Entertainment Holdings Inc. Chief Executive Adam Aron said he was "extremely disappointed" with second-quarter earnings that came in weaker than Wall Street expected, as the industry continues to suffer from weak box office returns. The company reported a net loss of $176.5 million in the quarter, or $1.35 per share, after net income of $24 million, or 24 cents per share during the same period a year ago. FactSet's consensus was for a loss of $1.34 per share. Revenue for the quarter was $1.20 billion, up from $764 million a year ago, but slightly below FactSet's $1.22 billion consensus. Admissions revenue increased 58.2% to $761.4 millions and revenue from concessions increased 53.6% to $374.1 million. AMC, along with other cinema chains have struggled in the year so far as box office returns have been weak. Aron said earnings fell well short of expectations due mainly to the weak box office, high expenses and weaker admissions at some of its newly acquired cinemas. Shares of AMC were up more than 3% in premarket trade, but have declined more than 55% in the year to date. By comparison, the S&P 500 index is up more than 10%
Copyright © 2017 MarketWatch, Inc.
Continue Reading Below