AMC Entertainment, one of the largest theater chains in the world, reported a significant drop in revenue for the second quarter of the year. The company’s total revenues for the quarter ended June 30 decreased to just over $1 billion, down from $1.35.9 billion in the same period last year.
The decline in revenue can be attributed to a decrease in the number of films hitting screens during the quarter. This was largely due to strikes by Hollywood actors and writers, which severely impacted the entertainment industry in the early months of 2024. As a result, slow moviegoing in April and May contributed to the revenue shortfall for AMC Entertainment.
As a direct result of the revenue decline, AMC Entertainment swung to a loss of $32.8 million for the quarter, compared to a $8.6 million profit in the same period last year. This translated to negative earnings per share of 10 cents, down from 6 cents, and adjusted EBITDA of $29.4 million, significantly lower than the $182.5 million reported in the previous year. Despite these losses, CEO Adam Aron remains optimistic about the future.
According to Aron, AMC Entertainment saw a major uptick in business starting in June. Daily revenues increased significantly from the slower months of April and May, leading to a positive swing in financial results for the month of June. This positive trend has continued into July, with impressive box office performance driving confidence in the industry’s recovery.
Looking ahead, Aron is confident that the movie theater industry will continue to show increasing strength in the second half of 2024 and beyond. He believes that the impressive box office performance in recent months is a sure sign that moviegoing in theaters is on an upwards trajectory, despite the challenges faced earlier in the year. AMC Entertainment will be hosting a call to discuss their results on August 2nd, where further insights into the company’s performance and future projections will be shared.
While AMC Entertainment faced significant losses in the second quarter of the year, the positive uptick in business in June and July signals a potential recovery for the company and the industry as a whole. With strong box office performance and increasing confidence in moviegoing, AMC Entertainment remains optimistic about its future prospects.