AMC Entertainment Holdings Inc. reported a modest second-quarter profit, beating analysts’ projections for a loss, thanks to the strong theatrical performance of The Super Mario Bros. Movie.
(Bloomberg) — AMC Entertainment Holdings Inc. reported a modest second-quarter profit, beating analysts’ projections for a loss, thanks to the strong theatrical performance of The Super Mario Bros. Movie.
Profit amounted to $8.6 million, or 1 cent a share, reversing a year-ago loss, the theater chain said Tuesday. Revenue grew 16% to $1.35 billion. Analysts had forecast a loss of 4 cents a share and revenue of $1.29 billion.
AMC’s Adam Aron, chief executive officer of the world’s largest cinema operator, said fans were spending more to see pictures on the biggest screens with the best sound.
Shares of AMC were up 1.5% to $5.20 at 10:53 a.m. in New York.
Super Mario, from Comcast Corp.’s Universal Pictures, is the year’s highest-grossing film to date, with $1.35 billion in global box-office sales. The film also helped Cinemark Holdings Inc. and Marcus Corp. beat sales and profit expectations last week.
Ticket sales for Greta Gerwig’s Barbie and Christopher Nolan’s Oppenheimer, from Warner Bros Discovery Inc. and Universal respectively, are lifting theater operators’ sales in the current quarter: AMC and Vue International both recorded their best ever weeks in July.
Still, 2023 box-office sales are trending below pre-pandemic levels due to changing viewing habits, exacerbated by streaming and a lower supply of theatrical films from studios.
In an open letter in July, Aron warned shareholders that AMC faces a liquidity crunch and has urged them to grant the company authorization to raise more cash through stock sales.
Management is seeking to convert its so-called AMC Preferred Equity Units, which trade under the APE ticker on the Nasdaq, into AMC common stock.
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