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Giant theater chain AMC Entertainment swung to red as revenue fell in the second quarter. Fewer films hit screens due to the Hollywood actors and writers strikes, but CEO Adam Aron said the worst and a major uptick that started in June is continuing.
In preliminary results, released ahead of its formal quarterly earnings, the company said total revenues for the quarter ended June 30 dipped to just over $1 billion from $1.35.9 billion a year ago, dragged down by slow moviegoing in April and May. As a result, AMC swung to a loss of $32.8 million, from a $8.6 million profit in the 2023 quarter.
EPS of negative 10 cents compared to 6 cents and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $29.4 million well well down from $182.5 million.
Cash and cash equivalents stood at $770 million.
“As we accurately predicted and previously disclosed, the prolonged actors and writers strikes of 2023 severely reduced the number of movies being released theatrically in the early months of 2024. This explains the weakness in our preliminary Q2 2024 results, as contrasted with the same quarter of a year ago,” said CEO Adam Aron.
“But if looking only at the full quarter, the lay observer might easily miss the incredibly good news that transpired within the second quarter. Finally, moviegoing in theatres appears again to be on an upwards trajectory.”
He said AMC saw a significant increase in daily revenues in June from April and May, leading to a positive swing in financial results June.
“So far, the impressive box office performance has continued into July. And AMC continues to be confident that industry-wide movie revenues for the second half of 2024, and into 2025 and 2026 will continue to show increasing strength.”
He will host a call after results Aug. 2.