Feb 25 (Reuters) - AMC Entertainment ( AMC ) topped Wall
Street estimates for quarterly revenue on Tuesday, boosted by
wildly popular releases including "Moana 2" and "Wicked" that
helped draw a strong crowd of moviegoers.
Shares of the company rose about 3% in extended trading
after it reported a 20% jump in attendance in theaters in the
fourth quarter.
AMC's results are another sign Hollywood studios and cinemas
have rebounded from disruptions caused by the strikes in 2023 by
writers and actors, which left theater chains with a thin slate
of releases in the first half of last year.
Disney's ( DIS ) animated musical "Moana 2" debuted with an
estimated $368 million in global ticket sales, and combined with
"Wicked" and "Gladiator II" helped deliver the biggest
Thanksgiving weekend in U.S. and Canadian box office history.
Leawood, Kansas-based AMC said attendance in theaters rose
to 62.4 million, compared with 51.9 million a year earlier.
The strong attendance numbers could also help quell some
fears around the death of cinema, after prolonged closures
during the COVID-19 pandemic sparked concerns audiences might
prefer to stream movies at home rather than heading to theaters.
AMC also generated about $114 million in free cash flow in
the quarter, marking its highest quarterly cash flow post
pandemic.
The company expects to see material growth in the
industry-wide box office in 2025 and beyond, CEO Adam Aron said,
pointing to "a growing lineup of movies (that) open exclusively
in movie theaters".
Revenue for the fourth quarter ended December 31 rose 18% to
$1.31 billion, compared with analysts' average estimate of $1.30
billion according to data compiled by LSEG.
The company reported net loss of $135.6 million, smaller
than the $182 million loss a year earlier.