AMC revenues beat, losses decrease as moviegoers return to theaters
Nov. 8 (Reuters) – AMC Entertainment Holdings Inc (AMC.N) topped quarterly revenue estimates on Monday, as nearly all of its theaters reopened and moviegoers returned for new releases such as “Shang-Chi and the legend of the ten rings “and” Black Widow “.
The world’s largest film company also recorded a smaller-than-expected loss, with COVID-19 vaccinations increasing and restrictions easing prompting consumers to return to the big screen after months of downtime as they had resorted to streaming new releases from home.
Marvel’s “Shang-Chi” was one of the biggest earners since the pandemic and broke a box office record for Labor Day weekend. For the current quarter, AMC’s roster includes “Venom: Let There Be Carnage” and the latest James Bond film, “No Time to Die”.
“More and more major films are on the agenda for the rest of 2021, and throughout 2022… our spirits are optimistic,” Managing Director Adam Aron said in a statement.
“However… no one should be deluded that there is no longer a challenge ahead of us. The virus continues to be with us,” he said.
The company’s shares are down about 2% in extended trading, but their value has risen more than twenty times this year, largely thanks to an army of retail investors coordinating their purchases on forums such as Reddit’s WallStreetBets.
AMC’s net loss declined to $ 224.2 million for the third quarter ended September 30, from $ 905.8 million last year.
On a per share basis, it lost 44 cents. Analysts had expected a loss of 53 cents, according to IBES data from Refinitiv.
Revenue rose to $ 763.2 million from $ 119.5 million, beating estimates of $ 708.3 million.
Revenue from food and beverage sales at the theater alone increased nine-fold to $ 265.2 million, amid broader price hikes on everything from sodas to cookies.
Report by Nivedita Balu in Bengaluru; Editing by Devika Syamnath
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