Movie theatre chain and ‘meme’ stock AMC Entertainment smashed second quarter revenue expectations after flinging the doors open to its hundreds of cinemas following the pandemic lockdown.
The New York-listed company reported that all of its 593 domestic US theatres were open, as of 30 June, with another 335, or 95%, of its international outlets following relaxations of lockdown restrictions.
AMC saw 22 million cinema goers back in its theatres during the quarter, with new blockbuster films (such as the ninth instalment of the Fast and Furious franchise) released in the period helping it to achieve successive box office records for the pandemic period.
AMC reported revenue of $444.7 million, crushing the $367.5 million forecast for the quarter, while losses were also much lower than expected, with loss per share of $0.71 versus $0.96 pencilled in by analysts.
BITCOIN TICKETS TO GO ON SALE
Interestingly, AMC says it will have technology in place to accept payments for tickets and concessions in bitcoin by the end of the year.
The announcement was made by the cinema chain’s chief executive Adam Aron, who also revealed that the company had raised another $1.25 billion in the period, which he said will give the company ‘financial staying power to navigate boldly amidst coronavirus waters.’
The CEO added on the post-earnings call that revenues for the third quarter are on track to reach 45% of the levels seen in the same period of 2019, according to Reuters.
‘AMC’s journey through this pandemic is not finished, and we are not yet out of the woods,’ Aron said. ‘However, while there are no guarantees as to what the future will bring in a still infection-impacted world, one can look ahead and envision a happy Hollywood ending to this story. We would like to think that someday when a movie is filmed about AMC and Covid, its title will be one compelling word, “Recovery,” but only time will tell,’ Aron said.
AMC saw its share price jump nearly 10% in pre-market trading, indicating a Tuesday opening price of $37.10.
