AMC Theatres’ Q1 earnings offer further evidence that the cinema business is on a path towards recovery. America’s largest exhibitor reported $951 million in first quarter revenue, higher than Wall Street’s consensus expectations and significantly ahead of last year’s first quarter. The largest factor in growing revenues as the appeal of new movie releases in the quarter, which drove attendance and related concessions sales. An increase in sales of higher-price tickets to see movies in AMC’s premium large format auditoriums also played a role.
CEO Adam Aron struck an optimistic tone during a call with investors, arguing that the theatrical business is entering a more reliable phase of recovery as major studios release a more consistent stream of wide releases. Aron argued that the underlying demand to see new movies in theatres is strong, and that customers show up when studios offer exciting new movies.
AMC highlighted progress on its efforts to diversify offerings, announcing a new partnership with live entertainment company Arena One to bring live concerts and music events into AMC theatres. The initiative reflects the growing industry effort to position movie theatres as venues for a variety of entertainment options are available, generating incremental revenue beyond traditional film exhibition, particularly during slower periods in the release calendar. Aron also took time to champion Netflix for their recently-announced decision to give NARNIA: THE MAGICIAN’S NEPHEW an exclusive run in theatres and stated his strong support for the leadership and direction of Paramount-Skydance CEO David Ellison.
