AMC Entertainment Holdings, Inc. (NYSE: AMC), the world’s largest movie exhibition company, has released its third-quarter financial results for 2024, ending September 30.
The company reported a modest revenue decline and an adjusted loss per share, although it exceeded Wall Street’s earnings expectations.
For the quarter, AMC reported total revenue of $1.35 billion, down slightly from $1.4 billion during the same period in 2023. The company posted an adjusted loss of 4 cents per share, a decline from the previous year’s profit of 8 cents per share. Despite these challenges, AMC’s performance surpassed analysts’ forecasts, although its stock fell 6% in after-hours trading.
AMC’s CEO, Adam Aron, attributed the company’s results to ongoing recovery efforts from the impact of the COVID-19 pandemic, as well as the presence of high-profile films such as Deadpool 3 and The Wolverine in the quarter. Aron also emphasized the company’s plans for future growth, including a new initiative dubbed the “GO Plan.” This long-term strategy aims to enhance AMC’s movie-going experience through major improvements to seating, projection, and auditorium features. The project is expected to unfold over the next several years, beginning in the US and later expanding to AMC’s international locations, including those operated by Odeon in Europe.
While specific financial details for the renovation plan were not disclosed, Aron hinted that the total cost could run into the hundreds of millions, depending on the speed at which the upgrades are rolled out. The company plans to add more luxurious seating, greater legroom, and laser projection systems at its top-performing theaters. Additionally, a new auditorium format, AMC XL, will feature expanded screen sizes to compete with other large-format cinema experiences like IMAX.
“Over the next few years, we anticipate a rising box office, which provides us the flexibility to either accelerate or slow down our upgrade plan,” Aron said during a webcast to investors.
He added that the company would carefully manage its capital expenditures, aligning them with improvements in profitability metrics such as EBITDA.
AMC also reported that some debt repayments had been pushed into the future, allowing the company to allocate resources toward reinvestment in its theater assets. The company emphasized that these capital expenditures will be made only when other key financial indicators show improvement.
AMC continues to lead the global theater industry, with approximately 900 theaters and 10,000 screens worldwide. In addition to its focus on physical theater improvements, AMC has introduced several innovative programs, including the highly successful AMC Theatres Distribution, which saw hits like Taylor Swift | The Eras Tour and Renaissance: A Film by Beyoncé in 2023. The company is planning to release more concert films with leading musical artists in the coming years.
For more information on AMC’s quarterly results and future plans, investors and interested parties can visit the company’s Investor Relations website at AMC Investor Relations.
AMC Entertainment Holdings, Inc., Deadline, and Business Wire contributed to this report.
