AMC Entertainment (AMC) Profit for Q3 2021

AMC Burbank 16 and the bronze statue of Batman in downtown Burbank.

AaronP / Bauer-Griffin | GC Images | Getty Images

AMC Entertainment shares fell sharply in extended trading on Monday after the company reported a smaller-than-expected third-quarter loss.

Here’s what the company said compared to Wall Street’s expectations, based on a survey by Refinitiv analysts:

  • Loss per share: 44 cents vs. 53 cents expected
  • Income: $ 763.2 million vs. expected $ 708.3 million

AMC reported a net loss that fell to $ 224.2 million in the third quarter, or 44 cents per share. That loss is much less than the $ 905.8 million, or $ 8.41 a share, they lost a year earlier. Analysts had expected the company to lose 53 cents a share, according to Refinitiv data.

The revenue of the cinema network was $ 763.2 million, which exceeds analysts’ expectations of $ 708.3 million.

The company’s shares initially rose sharply after the results were released. However, as of 4:35 pm ET, the stock is down 1.2%. AMC stock has been at the center of the meme craze this year, skyrocketing 2025% in 2021.

AMC said that as of September 30, all of its local cinemas were open, as were 99% of international cinemas. The cinema chain noted that it received 40 million guests in the United States, Europe and the Middle East in the third quarter thanks to new blockbusters and growing vaccination rates.

During the quarter, the company’s admission revenues rose to $ 425.1 million from $ 62.9 million a year earlier. Food and beverage sales also rose to $ 265.2 million from $ 29.1 million year on year.

However, AMC’s operating expenses exceeded revenues, resulting in the company posting a quarterly loss.

“Our financial results continue to improve,” CEO Adam Aron said Monday. “You can see and feel that our industry and our company are on the road to recovery and improvement. Therefore, our mood is uplifted. “

“However, even with such good news, we are not yet where we want and should be,” he said. “We want to emphasize that no one should have any illusions that there will be no more problems ahead of us. The virus continues to be with us, we need to sell more tickets in future quarters than in the last quarter, and adjusted EBITDA is still well below pre-pandemic levels. “

At the end of the third quarter, AMC had over $ 1.8 billion in liquidity, including cash and unused revolving credit lines. Aron said the company does not intend to borrow from these lines of credit in the next 12 months.

This liquidity allowed AMC to explore and incorporate new revenue streams. The company has already rented new theaters, started offering new content such as concerts and sporting events, and is expanding into popcorn retail.

This is the latest news. Please stay tuned.

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