June 23, 2024

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AMC Theatres has best quarter since pandemic began

2 min read

Nostalgia and curiosity peaked moviegoer interest this summer—and theaters, which were plagued during the pandemic, saw a major revival. In fact, AMC Theatres reported its best quarterly earnings in its 103-year history this week, largely thanks to the mass attendance at the Barbie and Oppenheimer movies, which had box office sales of $1.4 billion and $947 million, respectively.  

AMC, the largest movie chain in the world, posted $1.4 billion in total revenue for the third quarter, up more than 45% year-over-year.  

“AMC was literally in a different ballpark of accomplishment than many third-party observers anticipated,” Adam Aron, AMC chairman, president, and CEO, said during the Leawood, Kansas-based Fortune 100 company’s third-quarter earnings report on Wednesday. “The entire quarter was rejuvenating for AMC. Moviegoers returned to AMC theaters and ever increasing numbers in the third quarter of 2023 in response to both our studio partners’ efforts to increase the quantity and quality of new releases.”

But it wasn’t just “Barbenheimer” that made the third quarter a blockbuster for AMC. Building up cash reserves and shedding unsuccessful locations helped the mega movie theater chain continue its pandemic recovery.

“We’ve been maniacal in building up our cash reserves,” Aron said. “For those trying to understand how AMC successfully has been defying gravity these past three and a half years: Having ample cash on hand is the secret sauce.”

Plus, during the third quarter, AMC added one new theater for every three it closed. That brings the total number of locations closed since the pandemic began to 156 and total new locations opened to 57. This nets a reduction of 99 locations. 

However, third-quarter rents were 5.6% below the same period in 2019, Sean Goodman, AMC executive vice president of international operations and chief financial officer, said during the earnings call. AMC did not respond to Fortune’s…

Sydney Lake

2023-11-10 16:00:27

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