As has been the case with other exhibitors, AMC announced terrific earnings for the third quarter in their earnings call last Tuesday. Powered by record-breaking revenues from BARBIE, OPPENHEIMER, and SOUND OF FREEDOM, AMC reported net income of $12.1 million for the quarter compared with a $226.9 million loss in the third quarter of last year.
This was the first profitable quarter for the world’s largest exhibitor since the beginning of the pandemic. Revenue for the quarter came in at $1.4 billion, a 45% increase year-over-year and $140 million more than the industry had expected from the company at the outset of the period. Attendance was up 38.4% from last year’s third quarter.
Despite all of the positivity, AMC CEO Adam Aron expressed concern about the impact of the lengthy strikes by Hollywood’s writers and actors. During the earnings call on Tuesday, the day before the announcement that the actors’ strike had finally been resolved, Aron said, “There has been and will be much collateral damage from these lengthy work stoppages.
For the benefit of all involved in the movie ecosystem, AMC believes this months-long disharmony needs to come to an end now.” AMC is saddled with a much larger debt burden than other large exhibitors and remains at risk of needing to declare bankruptcy to restructure its finances.
In an attempt to lessen their reliance on major studios, Aron confirmed that AMC will continue to work with top performers on theatrical releases of concerts, following the success they achieved this fall in their initiative with Taylor Swift. TAYLOR SWIFT: THE ERAS TOUR movie is now the highest-grossing concert film of all time, with AMC making a “handsome” profit from the venture.