AMC Entertainment Holdings Inc. on Wednesday reported better-than-expected revenue and a narrower-than-expected loss in fourth-quarter results, helped by the performance of Taylor Swift and Beyoncé concert films.
The movie theater chain and original meme stock reported a net loss of $182 million, or 83 cents per share, compared with a loss of $287.7 million, or $2.64 per share, in the quarter. last year. Excluding non-recurring items, AMC reported a loss of 54 cents per share. Analysts polled by FactSet had expected a loss of 70 cents per share.
Revenue rose 11.5% to $1.104 billion, above the FactSet consensus of $1.058 billion. AMC’s adjusted EBITDA increased 193% to $42.5 million.
Admissions revenue was $614.6 million, beating the FactSet consensus of $592 million. Food and beverage revenue was $370.2 million, also above the FactSet consensus of $357 million.
AMC shares fell 7.8% in extended trading.
AMC reported the results after a 91.4% decline in its stock price over the past 12 months. The shares have fallen sharply from meme levels reached in 2021, when their price approached $300.
In a statement, AMC CEO Adam Aron highlighted the impact of the Taylor Swift and Beyoncé concert films on the company’s fourth-quarter results.
“Despite a reduced overall box office, in the fourth quarter compared to the same quarter a year ago, AMC’s revenues grew 11.5% and AMC’s adjusted EBITDA nearly tripled,” Aron said. “Literally all of AMC’s revenue and EBITDA increase is attributable to the fact that we played these two films in our theaters in the U.S. and internationally.”
Aron last month called the theater chain’s declining share price “frustrating” and said last year’s Hollywood strikes, which halted film production, “ruined” box office results for the premiere part of this year.
He said he would have “a lot to say” about the state of the company at its earnings call, expected after the results are released.
Investors worry that the company’s efforts to shore up its finances through additional stock offerings increase the risk of shareholder dilution. According to Wedbush, AMC has about $4.1 billion in net debt, which it has taken on over the years to expand or stay afloat during the pandemic.
Tom Bruni, lead writer for Stocktwits’ Daily Rip & Markets newsletter, told MarketWatch last month that AMC has averted bankruptcy, cut costs, pushed its membership program and benefited from blockbusters like “Barbie” and “Oppenheimer.” . But he said consistent profits remained elusive and many investors were “burned out.”
Wedbush analyst Alicia Reese, however, said in a research note this month that she expects a “tumultuous” year for the theater chain, amid fluctuations in new movie release schedules.
But he said big concert films — namely “Taylor Swift: The Eras Tour” and “Renaissance: A Film by Beyoncé” — likely helped AMC capture a bigger share of the movie market.