AMC Entertainment Holdings Inc. reported a major jump in sales for its first quarter as people returned to watching movies in theaters. The company reported sales numbers more than five times higher than what it had generated over the same period last year.
The company made $785.7 million in revenue, up from $148.3 million the previous year. Revenue was higher than the $743.4 million expected by Wall Street. AMC CEO Adam Aron said the result was the best the company has ever had in years. Highly anticipated titles like the new Spider-Man and Batman movies helped bolster the company's sales for the period.
AMC is banking on the recent success of "Doctor Strange in the Multiverse of Madness" and other upcoming blockbuster films for its summer movie season. On its debut weekend, the new Marvel film brought in $450 million in worldwide ticket sales.
Aron said the company is on track for its planned pandemic recovery trajectory. He added that AMC has already proven that by the significant increase in its revenue and improvements in its adjusted EBITDA compared to last year.
The company said the remainder of the year looks promising with big films like "Top Gun: Maverick," "Jurassic World Dominion," and "Lightyear" on the way. Before the pandemic, the summer movie season had accounted for up to 40% of the domestic yearly box office.
AMC's deficit in the first quarter decreased to $337.4 million, down from $566.9 million the year before. Adjusted losses were 52 cents per share in the most recent quarter, lower analysts' projection of an adjusted loss of 63 cents per share.
During the quarter, the company disclosed a $28 million investment in Hycroft Mining Holding Corp. Before it drew the attention of meme-stock traders online and then of its current CEO, the owner of gold reserves in Nevada, was on the edge of bankruptcy. As of March 31, AMC has $1.38 billion in available liquidity and $1.16 billion in cash and cash equivalents.
AMC's share prices surged after the movie chain released its latest quarterly earnings. The stock increased by around 4.6% following the news. From its 52-week high of $72 last year, the stock has dropped more than 70%. AMC has lost around half of its value since the start of the year.
During the "meme stock" craze last year, AMC became a favorite of retail investors. The company had managed to take advantage of the situation and generated funds through public offerings as its stock price surged.
