AMC Entertainment is “ready to play on the offense again,” according to chairman and CEO Adam Aron, in spite of recording a $20.7m net loss for the third quarter of 2024.
The company, which owns the biggest cinema circuit in the US and the Odeon group in Europe, believes that 2025 US box office will “easily surpass” that of 2024, said Aron, with another increase in 2026. That will allow the exhibition giant, which has “necessarily been playing on the defensive,” to become more aggressive, Aron insisted.
As part of the new approach, AMC is launching an initiative – tagged the G.O. Plan – to invest $1bn to $1.5bn over the next four to seven years “to further elevate and differentiate the moviegoing experience that we offer.”
The plan, Aron reported, will include a doubling or tripling of the number of AMC screens with laser projection; seating upgrades; and the addition of more Premium Large Format (PLF) screens, of which the company currently has 566 worldwide.
The plan will roll out internationally as well as in the US, Aron said: “We have identified opportunities to develop a meaningful number of additional luxe cinemas, especially in the United Kingdom.”
In announcing AMC’s third quarter results, Aron noted “two important milestones in what has been a long road toward a post-COVID recovery.” The company’s adjusted EBITDA of $161.8m was its second best ever for a third quarter and revenues of $1,349m were 31% up on the second quarter.
Revenues were, however, 4.1% down on the third quarter of 2023, and the $20.7m net loss compared to net earnings of $12.3m for the previous year’s quarter. US revenues for the quarter were $1,055m, compared to $1,064m the year before, and international revenues were $293m, compared to $342m.
US attendance for the third quarter was 46.9m, down from 51.5m, and international attendance was 18.2m, down from 22.1m.
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