AMC Is Improving But Challenges Remain

With all of its domestic cinemas open as of September 30^th, as were 99% of its international theaters, AMC Entertainment Holdings AMC saw significant improvement in admission as well as food and beverage revenue during its third quarter. But despite posting a narrower than expected loss, shares fell more than 5% upon results on November 8^th as  investors saw more challenges ahead

Third Quarter Figures

A successful vaccination campaign and blockbuster titles enabled the entertainment company to welcome back 40 million guests across the U.S., Europe, and the Middle East during the quarter, bringing in revenue of $763.2 million, topping the expected 708.3 million. It is a significant increase compared to the second quarter's audience of 22 million guests. Admission revenue rose from $62.9 million in last year's comparable quarter to $425.1 million while food and beverage sales also surged from just $29.1 million to $265.2 million.

On a less bright note, operating costs outpaced revenue, leading the company to post a loss for the quarter, resulting in a loss per share of 44 cents, which is still better than the 53 cents that analysts had estimated.

As for liquidity that allowed the company to diversify its revenue through new theater leases, new content such as sporting events, and expansion into the popcorn business, it amounted to $1.8 billion at the end of the quarter, including cash and undrawn revolving credit lines.

Outlook

AMC's financial results continue to improve along with the recovery of the industry, but the company is still not where it wants to be. COVID-19 is still in the air, we need to sell more tickets in future quarters than we did in the most recent quarter, and adjusted EBITDA is still well below pre-pandemic levels. The company is looking into new payment options such as bitcoin and possibly launching its own cryptocurrency.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: contributors@iamnewswire.com

The post AMC Is Improving But Challenges Remain appeared first on IAM Newswire.

Image Sourced from Pixabay