AMC's Revenue Dips as First-Quarter Box Office Hits 27-Year Low

The movie theater company and initial meme stock AMC Entertainment Holdings Inc. surpassed Wall Street's revenue forecasts in its Q1 financial results released Wednesday, even though the box office experienced a sluggish start to the year during the first three months.

Historically, the first quarter belongs to AMC. quietest The firm's income for the last quarter reached $862.5 million, which is less than the $951.4 million reported in the same period the previous year, yet surpasses the FactSet projected average of $837 million.

Excluding the initial first quarters affected by COVID-19 and its repercussions, the box office revenue from January to March 2025 marked the lowest point since 1996," stated AMC CEO Adam Aron. "Should this trend persist, it could pose significant challenges for movie theaters.

Nevertheless, Aron characterized the first-quarter industry-wide domestic box office as "an aberrant distortion" that has since self-corrected. He pointed out that starting from April 1st, there has been a significant surge in movie attendance.

Related: AMC stands to benefit greatly as 'A Minecraft Movie' excites audiences at the box office.

Currently, the domestic box office figures are twice what they were last year, noted Aron. He highlighted upcoming releases across the next eleven weeks, like Walt Disney Co.'s "Lilo & Stitch," Paramount Pictures' "Mission: Impossible — The Final Reckoning," and Sony Pictures Entertainment's "Karate Kid: Legends" along with another film titled "28 Years Later." Additionally, Aron anticipates increased ticket sales due to major hits expected later this year, notably the highly anticipated release of "Avatar: Fire and Ash," set for early December.

In the quarter ended March 31, AMC reported a net loss of $202.1 million, equivalent to 47 cents per share, compared with a deficit of $163.5 million, or 62 cents per share, during the corresponding period the previous year. Adjusted for certain items, AMC’s loss was 58 cents per share, which slightly exceeded analysts' expectations as per FactSet estimates, where they had predicted a 59-cent-per-share loss.

The admission revenue for the quarter stood at $473.5 million, which is lower than the $530.5 million reported in the same time frame last year but exceeded the FactSet estimate of $467 million. Revenue generated from food and beverages amounted to $283.4 million, marking a decline compared to $321.2 million recorded during the corresponding period the previous year. According to analysts polled by FactSet, the projected figure for food and beverage sales was around $284 million.

By the end of the quarter, AMC had cash and cash equivalents totaling $378.7 million.

Related: This movie theater chain is considered a 'sure thing in an unstable market' — and it's neither AMC nor Cinemark.

During the conference call to review the results, Aron was questioned regarding the effect of President Donald Trump’s actions. proposed tariff It appears that there aren’t any definitive, concrete plans regarding potential changes concerning foreign-made films," he stated, based on a FactSet transcript. "There will certainly be plenty of opportunities for dialogue between the government and the film industry about this matter." He added, "Needless to say, we will closely monitor any advancements in this field.

Aron likewise provided an update on the firm's Go Plan, major investment effort mentioned earlier this year plans to enhance the movie-watching experience across its theater network. According to him, AMC anticipates expanding its Premium Large Format (PLF) and Extra-Large Format (XLF) screens from over 600 presently to above 1,000 in the coming months and years. The corporation aims for this growth. recently opened It marks the initial rollout of XLF screens in the U.S., with plans to introduce up to 50 or even more "XL at AMC" venues by the close of 2025.

"By the end of 2026, we aim to have approximately 250 XL setups at AMC theaters across the United States, complementing the 65 XL screens that were successfully launched as a pilot project in Europe last year," Aron mentioned.

The CEO of AMC mentioned an innovative two-person pod equipped with aprivacy shield that was introduced into a cinema hall in Norwich, UK. He stated, "This concept has proven quite popular among viewers." Therefore, they may consider implementing this feature further.

AMC's shares fell approximately 0.4% during after-hours trading. This year, the company’s stock has dropped by 31.9%, significantly outperforming the S&P 500 index which has decreased by 4.3%.