After a rough go during the pandemic, AMC Entertainment Holdings, Inc. reported the strongest second quarter in four years. The movie chain’s total revenue was $1.35 billion, a 15.6% increase year-over-year. Total revenue includes $744.1 million in ticket sales, $488.2 million in food and beverage sales, and $115.6 million in “other theatre” revenue. Though AMC does not specify what is included in the “other” category, it likely includes subscription revenue from the company’s two subscription programs – AMC Stubs A-List and AMC Stubs Premiere.

AMC also reported an impressive net income of $8.6 million, compared to a net loss of $121.6 million for the second quarter of 2022. Diluted earnings per share were $0.01, compared to a diluted loss per share of $(0.12) for the same period last year.

Adam Aron, chairman and CEO of AMC Entertainment, the largest movie chain in the US, commented on the strong quarter ended June 30, 2023.

“While we still have much work ahead of us on this front, AMC’s glide path to eventual recovery continued with significant pace in the second quarter of 2023 as our results set new records and represent AMC’s strongest second quarter in four full years,” Aron said in an August 8, 2023 news release.

“Our ongoing progress is obvious and ever so encouraging. Combining AMC’s commitment to innovation with a notable increase in both the number and quality of movie titles from our studio partners, movie theatres are once again captivating audiences and driving attendance back to AMC theatres,” added Aron.

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Second quarter highlights

The movie chain reported the following highlights for the second quarter:

• AMC Theatres drew in 66.4 million guests around the world during the second quarter, representing 12.2% growth in attendance.
• AMC Theatres in the US alone attracted 50 million guests, a 15% increase.
• Food and beverage revenue per patron was $7.36 globally, within $0.01 of their all-time high. This is significant because it is a high-margin category for the movie chain, contributing to profitability.
• Adjusted EBITDA grew to $182.5 million, a 71% increase year-over-year, and the highest quarterly figure since the fourth quarter of 2019.
• The company reduced the principal balance of their debt by $42 million through debt repurchases.
• At the end of the quarter, the company had $435.3 million in cash, excluding restricted cash of $22.9 million.

“Explosive” third quarter

AMC is also expecting a very strong third quarter.

“The third quarter of 2023 is off to an explosive start with BARBIE, OPPENHEIMER, MISSION IMPOSSIBLE – DEAD RECKONING PART ONE, and SOUND OF FREEDOM, among others, combining to cause July to become the highest monthly revenue in AMC’s storied 103-year history. There are so many more engaging movie titles to enjoy at AMC theatres later this year, and we can’t wait to welcome moviegoers to our nearly one thousand theatres in the U.S., Europe, and the Middle East,” said Aron.

Insider Take

This is great news for AMC Entertainment, who has been struggling since the pandemic. Over the last several years, there have been some very grim moments with attendance restrictions, new hygiene protocols, and a general lack of interest in attending theatres compared to home viewing. However, with the pandemic (mostly) in the rearview mirror, attendees are eager to get back into theatres and blockbuster films are drawing them back in. AMC is capitalizing on that by offering some of the best films of the year, high-margin concessions, and subscription services to diversify revenue streams and encourage moviegoer loyalty.

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