AMC Shares Rise Amid Positive Earnings

AMC Shares Rise Amid Positive Earnings

AMC Entertainment (NYSE: AMC) posted strong first-quarter earnings Tuesday that outpaced Wall Street expectations. The company’s shares rose over 4% during after-hours trading on Monday.

The movie theater chain reported an earnings loss of USD0.65 per share, compared to the expected loss of USD0.67 a share. Meanwhile, revenue amounted to USD785.70 Million, higher than analysts anticipated USD743.43 Million.

“Our results for the first quarter of 2022 represent AMC’s strongest first quarter in two full years. We continue on our pandemic recovery trajectory, more than quintupling revenues and improving adjusted EBITDA by nearly eighty percent compared to a year ago,” CEO Adam Aron said in the company’s quarterly release.

The company emphasized its recent box-office hits, NFT and Crypto ventures, as well as its USD28 Million stake in gold miner Hycroft Mining Holdings (HYMC).

“Whether through leveraging our core competencies in theatrical exhibition or our experience in balance sheet management and capital raising, we will continue to take bold, decisive action to strengthen AMC for the future,” said Aron.

While “No Way Home” and “The Batman” had successful runs in theaters, the profit made from that period did not cover the nearly USD1 Billion AMC spent on operating expenses as well as rent.

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