AMC Entertainment Holdings Inc. announced reported better-than-expected revenue and a smaller-than-expected loss in its fourth-quarter results on Wednesday, boosted by the performance of Taylor Swift and Beyoncé's concert films.
The movie theater chain and original meme stock reported a net loss of $182 million, or 83 cents per share, compared to a loss of $287.7 million, or $2.64 per share, in the year-earlier quarter. Excluding one-time items, AMC reported a loss of 54 cents per share. Analysts surveyed by FactSet were expecting a loss of 70 cents per share.
Revenue grew 11.5% to $1.104 billion, above the FactSet consensus of $1.058 billion. AMC's adjusted EBITDA rose 193% to $42.5 million.
Admissions revenue was $614.6 million, above the FactSet consensus of $592 million. Food and beverage revenue was $370.2 million, above the FactSet consensus of $357 million.
AMC shares fell 7.8% in extended trading.
AMC announced the results after its share price fell 91.4% over the past 12 months. Shares have fallen more broadly than the highs meme stocks reached in 2021, when their price approached $300.
In a statement, AMC CEO Adam Aron highlighted the impact of Taylor Swift and Beyoncé's concert films on the company's fourth-quarter results. “Despite overall box office declines, in the fourth quarter compared to the same quarter last year, AMC's revenues grew 11.5% and AMC's adjusted EBITDA nearly tripled,” he wrote. “Literally, all of this increase in AMC's revenue and EBITDA is attributable to the release of these two films in our theaters in the U.S. and internationally.”
Last month, Aaron described the decline in the movie theater chain's share price as “disappointing” and said that last year's Hollywood strikes, which halted film production, had “destroyed” box office results in the first part of this year.
He said he would have “a lot to say” about the company's state at its earnings call, scheduled after the results are published.
Investors are concerned that the company's efforts to shore up its finances through more stock offerings are increasing the risk of shareholder dilution. AMC has about $4.1 billion in net debt, according to Wedbush, which it has taken over the years to either expand or stay afloat during the pandemic.
Tom Bruni, lead writer for Stocktwits' Daily Rip & Markets newsletter, told MarketWatch last month that AMC avoided bankruptcy, cut costs, paid up its membership program and cashed in on blockbuster movies like “Barbie” and “Oppenheimer.” But he said consistent profits remained elusive, and many investors were “exhausted.”
However, Wedbush analyst Alicia Reese said in a research note this month that she expects a “tumultuous” year ahead for the movie theater chain, amid fluctuations in the preparation of new movie releases.
But she said the big concert films — namely “Taylor Swift: The Eras Tour” and “Renaissance: A Film by Beyoncé” — likely helped AMC capture a larger share of the movie theater market.
