AMC Entertainment Earnings Call $AMC Q1 2023 10Q

[NYSE: AMC]

MAY 8, 2023

Key Takeaway from AMC Entertainment earnings call $AMC Q1 2023 10Q:

AMC Entertainment reported strong Q1 2023 results, fueled by growing industrywide box office revenue and the approval to combine APE preferred units and AMC common shares. The company’s focus on enhancing the theater experience, expanding premium large format screens, and investing in laser projection technology demonstrates confidence in the future of the movie theater industry.

 

Key points from AMC Entertainment earnings call $AMC Q1 2023 10Q

 

– Adam Aron, Chairman and CEO, expressed optimism about AMC’s future based on two key developments: growing industrywide box office in North America and Europe and the approval of combining APE preferred units and AMC common shares.
– The industrywide box office in North America grew by 29% quarter to quarter compared to last year, reaching over $1.7 billion in the first quarter of 2023.
– Industrywide attendance in movie theaters in Europe is also approaching pre-pandemic levels, indicating a positive trend.
– AMC expected the 2023 industrywide domestic box office to be up 15% to 25% or more over 2022, but with a strong start, they now anticipate a 20% to 30% increase over last year.
– Shareholders voted overwhelmingly in favor (88%) of combining APE preferred units and AMC common shares, allowing the company to raise significant equity capital.
– AMC reported strong financial results in Q1 2023, with 21% growth in global revenues to $954 million and positive adjusted EBITDA of $7 million compared to a loss of $62 million in the previous year.
– The first quarter of 2023 marked the first two consecutive quarters of positive adjusted EBITDA since March 2020.
– More than 47 million guests visited AMC theaters worldwide in Q1 2023, indicating that movie theaters are still popular and a significant part of the cultural fabric.
– AMC experienced higher food and beverage revenues per patron, reaching $6.90 globally and $7.99 in the United States, demonstrating increased consumption and a high-margin business.
– AMC plans to invest in premium large format (PLF) screens, including upgrading IMAX screens to IMAX with Laser and increasing the number of Dolby Cinema screens.
– Laser projection, which increases brightness and sharpness while consuming less energy, is being installed in about half of AMC’s U.S. screens.
– Despite the positive results, AMC acknowledges that the box office has not fully recovered to 2019 levels, but they expect continued improvement and anticipate domestic box office revenues of $9 billion or more in 2023.
– AMC’s EBITDA has shown a positive trend, with hundreds of millions of dollars higher projected in 2023 compared to previous years.
– AMC is confident in its future and remains focused on enhancing the theater experience and exploring growth opportunities through M&A.

 

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