AMC Theaters is still not yet out of the red, but the first quarter of 2023 saw a substantial year-over-year improvement in revenue that enabled the company to cut its loss for the period by 30%.
Revenue for the three months ended March 31 improved to $954.4 million thanks to early-year hits like “M3GAN” and “Puss in Boots: The Last Wish,” as well as March hit sequels like “Creed III” and “Scream VI,” AMC Entertainment Holdings said Friday. That was up 21.5% from $785.7 million in the first quarter of 2022 and beat projections of $936.1 million compiled by Zack’s Investment Services.
Revenue from admissions leaped 30% to $328.7 million. AMC’s nearly 10,000 screens worldwide saw attendance rise to 47.6 million, a 22% gain, thanks to the strong film slate. In the U.S., attendance jumped 25% to 32.4 million, from 25.8 million last year. International attendance gained 15% to 15.3 million.
“All told, the first quarter North American box office easily surpassed 2022 by some 29%, totaling more
than $1.7 billion,” CEO Adam Aron said in a statement. “The recovery in the European box office was even stronger in getting to pre-pandemic norms than that in the U.S. As I have said for years, when our studio partners showcase their magical storytelling, there is robust demand to be realized at AMC theaters both in the U.S. and abroad.”
The company posted a quarterly loss of $235.5 million or 17 cents per share, an improvement from last year’s loss of $337.4 million, or 33 cents per share. On an adjusted bases, the loss came to 13 cents per share, besting analyst projections for a loss of 17 cents per share, according to Zack’s.
“This progress is a testament to the ongoing recovery in the industrywide box office, as well as AMC’s enduring commitment to excellence and innovation as our guests enjoy a superb movie-going experience at our theatres,” Aron said.
In premarket trading, AMC shares gained 3.6%, after closing Thursday at $5.92, up 50% since the start of the year.
The company pointed to a “blistering pace” for spending at theaters, noting that food and beverage purchases per patron rose 7% during the period, to an average of $6.90 worldwide, and $7.99 in the U.S.
Average ticket price in the U.S. was $11.87, down from $12.05 last year, while worldwide average ticket price inched down to $11.22, from $11.36 last year.
Analysts don’t expect AMC to turn a profit until 2024, but they believe it will keep narrowing losses as the box office continues to recover. The second-quarter domestic box office is already close to $1 billion thanks in large part to “The Super Mario Bros. Movie,” which this weekend will become the third animated movie to gross $500 million in North America, after crossing the $1 billion mark worldwide lsast weekend.
That momentum should carry into a strong summer slate that includes May and June films like “Guardians of the Galaxy Vol. 3,” “The Little Mermaid,” and “The Flash.”
“We believe the first quarter of 2023 is just the tip of the iceberg for what’s to come in the remainder of
the year,” Aron said. “With so many compelling movies coming just in the next few months … the remainder of the year promises something for everyone, and AMC stands ready to welcome movie-goers in significant numbers. We could not be more optimistic about the prospects for the 2023 box office, except to say that 2024 looks even better.”
In an interview with TheWrap at CinemaCon last week, AMC CEO Adam Aron said that he believes the worst damage wrought by the pandemic is behind AMC, and that as long as films continue to come out on a stronger frequency than last year, the theater chain will remain on a path to financial stability.
“The box office is on a positive ramp,” he said, “and if we have the ability to raise cash if we need to, I have no real fear.”
