The AMC 25 Theater in Times Square in New York is seen on Tuesday July 8, 2014.
Richard Levine | Corbis News | Getty Images
Even Spider-Man and Batman’s tag team couldn’t make AMC Entertainment profitable in the first quarter. Still, shares of the cinema chain rose more than 4% after the close on Monday after posting a smaller-than-expected loss for the period.
AMC has made great strides towards recovery since the pandemic closed all of its locations worldwide in 2020, but a limited lineup of new movies in the first three months of the year meant fewer movie tickets were sold compared to pre-pandemic levels.
However, the recent release of Marvel’s Doctor Strange in the Multiverse of Madness kicks off a steady stream of new and highly anticipated theatrical debuts that will boost AMC’s ticket sales for the months to come.
“Our 2022 first quarter results represent AMC’s strongest first quarter in two full years,” CEO Adam Aron said in a statement Monday.
“The cumulative success of ‘Spider-Man: No Way Home’, ‘The Batman’, ‘Sonic The Hedgehog 2’ and the premiere of ‘Doctor Strange in the Multiverse of Madness’ this past weekend should leave no doubt as to its enduring appeal the theatrical exhibition,” he said. “When Hollywood puts out films that moviegoers want to see, people flock to theaters to see films where they are meant to be seen in theaters or on the big screen.”
While “No Way Home” and “The Batman” were solid in theaters and AMC recorded nearly 40 million admissions for the quarter, revenue generated during the period did not outweigh the nearly $1 billion that AMC spent on operating expenses and rent .
The theater chain reported a net loss of $337.4 million, or 65 cents a share, compared to a loss of $567.2 million, or $1.42 a share, a year ago.
Excluding special items, the company lost 52 cents a share, down from the 63 cents analysts had expected the company to lose during the quarter, according to a Refinitiv poll.
Revenue rose to $785.7 million from $148.3 million last year, beating $743 million expected by analysts.
AMC ended the quarter with $1.3 billion in available cash. The stock ended Monday down 9% as the broader market suffered a sell-off.
https://www.cnbc.com/2022/05/09/amc-amc-earnings-q1-2022.html AMC (AMC) Results Q1 2022