AMC tops revenue estimates as blockbuster titles boost theater attendance
(Reuters) -AMC Entertainment surpassed Wall Street estimates for second-quarter revenue on Monday, as top U.S. blockbusters such as "A Minecraft Movie" and "Lilo & Stitch" drove more people to its theater chains.
Shares of the company rose 7% in premarket trading, after it also reported a nearly 26% jump in attendance during the period.
"Clearly, moviegoing guests prefer to see their favorite films in the most immersive, most spectacular formats possible," CEO Adam Aron said.
"Our premium auditoriums are operating at close to three times the occupancy of a regular auditorium and command a healthy price premium to boot."
The film industry across the globe has benefited from a recovering box office and growing consumer demand for premium moviegoing experiences.
Warner Bros Discovery (NASDAQ:WBD)’s video game-based film "A Minecraft Movie" grossed nearly $1 billion globally, helping the company report 55% growth in the studio unit and a surprise profit during the April to June period.
AMC’s second-quarter revenue rose 35.6% to $1.40 billion. Analysts on average estimated $1.35 billion, according to data compiled by LSEG.
Aron said the company would continue to roll out more IMAX (NYSE:IMAX), Dolby Cinema, Prime, iSense, XL and Laser equipped screens.
Its net loss stood at $4.7 million, compared with the loss of $32.8 million a year earlier.
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