AMC CEO says movie theater giant has finally 'recovered' from pandemic-era struggles
CEO Adam Aron said the company's $1.7B third-quarter revenue was driven by loyalty programs and premium large format screens
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AMC Entertainment said on an earnings call this week that it has finally recovered from the struggles it experienced in the years following the COVID-19 pandemic.
The company struggled with the loss of cash flow due to the pandemic-related movie theater shutdowns and a large debt burden and other headwinds that have affected the entertainment industry in recent years, including shorter theatrical release windows, competition from streaming and production halts due to the writers' and actors' strikes in 2023.
AMC's latest earnings report showed the company set an all-time record for revenue and adjusted EBITDA for the second consecutive quarter.
"In recent years, where other key players in our industry collapsed, at AMC we repeatedly instead have talked about recovery," AMC CEO Adam Aron said. "Today, we can finally say that AMC has recovered."
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The company struggled with the loss of cash flow due to the pandemic-related movie theater shutdowns. (KHemaz/GVN via Getty Images)
"To our studio partners, business partners, employees and our millions of passionate shareholders, thank you for staying with us as we traveled through a long and, at times, brutal road," Aron said.
"Mere survival was never the goal. Our goal ultimately was to thrive, and that is exactly and precisely where our focus now lies. We are highly energized by the tremendous opportunities ahead," he added.
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AMC CEO Adam Aron said the company has finally recovered from its post-COVID struggles. (Rich Polk/Variety via Getty Images)
AMC Entertainment reported $1.7 billion in total revenue in the third quarter, up 31.6% from a year ago. Adjusted EBITDA was $347.5 million for the quarter, compared to $122.5 million in the same quarter a year ago.
Aron said the third-quarter results were driven by "industry-leading loyalty programs along with the vast and growing number of AMC's premium large format and extra large format auditoriums, combined with disciplined cost management, superb execution and the operating leverage inherent in our business."
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMC | AMC ENTERTAINMENT HOLDINGS INC | 3.13 | +0.06 | +1.95% |
He added that the company is seeing continued momentum in the current quarter, noting that AMC's October domestic box office was up about 35% from the same month last year. Aron noted that "some of the year's most anticipated films are still to come in November and December. … We expect the remaining film slate to propel both the domestic and global box office to their highest full-year levels in seven years."
AMC is the largest movie exhibition company in the U.S. and the world, with about 840 theaters and 9,500 screens around the world.