AMC tops income goal as field workplace hits drive sturdy demand

AMC Leisure topped Wall Road estimates for quarterly income on Tuesday, boosted by wildly fashionable releases together with “Moana 2” and “Depraved” that helped draw a robust crowd of moviegoers.

Shares of the corporate rose about 3% in prolonged buying and selling after it reported a 20% bounce in attendance in theaters within the fourth quarter.

AMC’s outcomes are one other signal Hollywood studios and cinemas have rebounded from disruptions brought on by the strikes in 2023 by writers and actors, which left theater chains with a skinny slate of releases within the first half of final yr.

Disney’s DIS.N animated musical “Moana 2” debuted with an estimated $368 million in world ticket gross sales, and mixed with “Depraved” and “Gladiator II” helped ship the largest Thanksgiving weekend in U.S. and Canadian field workplace historical past.

Leawood, Kansas-based AMC stated attendance in theaters rose to 62.4 million, in contrast with 51.9 million a yr earlier.

The sturdy attendance numbers may additionally assist quell some fears across the loss of life of cinema, after extended closures throughout the COVID-19 pandemic sparked considerations audiences may favor to stream films at dwelling relatively than heading to theaters.

AMC additionally generated about $114 million in free money movement within the quarter, marking its highest quarterly money movement put up pandemic.

The corporate expects to see materials progress within the industry-wide field workplace in 2025 and past, CEO Adam Aron stated, pointing to “a rising lineup of flicks (that) open completely in film theaters”.

Income for the fourth quarter ended December 31 rose 18% to $1.31 billion, in contrast with analysts’ common estimate of $1.30 billion based on information compiled by LSEG.

The corporate reported internet lack of $135.6 million, smaller than the $182 million loss a yr earlier.