Shares of AMC Theatres were up nearly 6 percent on Monday after the cinema chain reported first-quarter earnings that were above Wall Street’s expectations.
The company reported earnings of 14 cents per share for the quarter, which was an improvement from the 7 cents AMC reported during the same quarter a year ago. AMC’s EPS was also above the 9 cents expectations from analysts, according to forecasts on Yahoo Finance.
AMC’s total revenue for the quarter was $1.38 billion, up from $1.28 billion a year ago, and just above analysts’ $1.35 billion forecast.
During the company’s quarterly conference call with analysts and investors, AMC CEO Adam Aron rebuked the idea that the industry was in a decline following the dismal summer box office performance in 2017.
This was the fifth consecutive quarter that AMC set a record in every revenue category, according to Aron, and it was the highest first quarter ever for the company.
“We are truly heartened by AMC’s start to 2018 and couldn’t be more excited about the prospects for the year after the record-breaking success of ‘Avengers: Infinity War’ early in the second quarter,” AMC CEO Adam Aron said in a statement. “AMC’s strategy is working. We have invested wisely for our shareholders, especially in creating a better movie-going experience for our guests. Adding to all of AMC’s progress this year, the crowning achievement in 2018 so far has been our opening of the first movie theatre in Saudi Arabia in 37 years.
“But equally important as our own success, is the success of the movie industry,” Aron continued. “We are confident that the pedigree of franchises from which a dazzling array of films will be released over the next several months has the potential to propel the industry and AMC even higher.”
AMC also reported that admissions revenues increased 7 percent compared with last year and concessions revenues increased 2 percent.
Aron also said that the declining concern around last year’s premium video on demand debate is one reason AMC is confident in its future.
“Investors were terrified that studios were going to take their films to the home with the dreaded PVOD conversation,” Aron said. “Everyone seems to sense now that PVOD is not on a near-term track.”