From CNBC: 2024-11-18 10:05:19

AMC Theater’s domestic box office sees highest third-quarter ticket sales post-pandemic, but the largest movie theater chain struggles with $4 billion in long-term debt. Despite revenue outpacing spending in Q3, high interest payments lead to a $21 million loss. Analysts skeptical of consistent profitability in the near future. Plans to improve revenue and draw back moviegoers in 2025-2026 with robust movie slates.

Q3 domestic box office hits $2.71 billion, slightly higher than last year, boosted by Warner Bros.’ “Barbie” and Universal’s “Oppenheimer” generating $1 billion in North America. AMC sees a 12% attendance decline despite the box-office surge. Challenges in Europe and urban centers affect attendance. Fourth quarter expected to be better with anticipated releases like “Wicked” and “Moana 2.”

AMC to invest $1-1.5 billion to enhance its premium large-format screens in the U.S. and Europe. Plans to capitalize on the demand for premium screens, which generate quadruple the revenue of non-premium screens. Company aims to attract moviegoers by offering an enhanced theatrical experience through its premium large-format screens. AMC is investing in new IMAX screens, Dolby Cinemas, and updating auditoriums with new projectors. Analysts caution against overspending as the company prepares for upcoming film releases.

To raise cash, AMC has issued more shares in the past, causing concerns about dilution among investors. The stock has fluctuated between $4 and $5, with shares down more than 26% this year.

AMC is closing underperforming theaters to save cash for other ventures. The company aims to maintain market share gains and increase revenue per screen and per attendee through various strategies.



Read more at CNBC: AMC debt threatens its ability to ride the box office rebound