AMC Entertainment Stock Rises 3.1% on Second-Quarter Results



Better-than-expected numbers

Today, AMC Entertainment (AMC) was trading 3.1% higher as of higher 8:11 AM ET following the announcement of its second-quarter results. The company reported revenue of $1.443 billion, which came in slightly better than the analyst estimate of $1.435 billion. EPS came in at $0.17, more than double analysts’ estimate of $0.08.

The strong summer box office (Avengers: Infinity Wars, Jurassic World: Fallen Kingdom, Incredibles 2, and Deadpool) gave the quarterly performance a boost. Revenue is also improving as the company revamps both its theater to enrich the movie-watching experience and its marketing programs. Management noted that its AMC Stubs A-list is gaining significant traction. A-List now has over 181,790 paid members as of August 1. The A-List feature has increased overall AMC loyalty membership to 15.8 million households.

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Plus, customers are now booking tickets through the company’s online booking platform and ditching third-party booking platforms. For the second quarter, online advance ticketing activity in the United States jumped 131% on a year-over-year basis. AMC is also expanding its presence internationally, with Saudi Arabia being the current focus. The company opened its first theater in the country and is looking to open 50 to 100 cinemas in the future.

AMC remains upbeat about its financial performance as its strategic imperatives seem to be heading in the right direction. Moreover, we expect 2018 to be a good year for movie theater stocks. After a blockbuster first half, the second-half release pipeline includes Mission Impossible: The Fallout, Fantastic Beasts 2, Venom, Aquaman, and Bumblebee.

 A quick look at the quarterly numbers

On a year-over-year basis, revenue grew 20%. Admissions revenue increased 17.7%, food and beverage revenue was up 19.2%, and other theater revenue rose 50.3%.

AMC’s EPS of $0.17 significantly improved from a loss per share of $1.35 in the corresponding quarter of 2017. AMC Entertainment’s adjusted EBITDA rose 80.3% YoY to $244.8 million, driven by strategic initiatives and cost-control efforts.


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