AMC Theaters Q2 2024 Earnings: $32M Loss

During a quarter in which the box office started off weaker, the nation’s biggest exhibitor AMC Theaters posted a net loss as well as revenue almost $300 million below the comparable frame a year ago.

The movie theater chain, led by CEO Adam Aron, posted total revenue of $1.03 billion and a loss of $32.8 million in the second quarter of 2024. Earnings before interest, taxes, depreciation, and amortization was at $29.4 million compared to $182.5 million for the year ago period.

Aron, who repeated “cash is king” multiple times during an earnings call with investors, said that the company had “ample” cash reserves of $770 million in its coffers to weather the box office storm amid its debt woes. The CEO reiterated that the theater giant was prepared for a slower year give the lack of studio product compared to pre-COVID years.

“As expected, the second quarter started slowly with the box office adversely impacted by the 2023 Hollywood writers and actors strikes,” Aron said, referring to studio delays for films that had been in production during Hollywood’s extended work stoppage last year. “However, the quarter finished with incredible strength powered by the success of Disney’s Inside Out 2which is now the highest grossing animated movie of all time.”

Last year in the second quarter The Super Mario Bros. Movie (which grossed $1.3 billion globally) and Guardians of the Galaxy Vol. 3 ($845 million) helped power the box office in April and early May. This year, April had A24’s Civil War ($122 million) and May was led by Kingdom of the Planet of the Apes ($397 million). It took Bad Boys: Ride or Die ($395 million) and Inside Out 2 ($1.5 billion) to help salvage the quarter for theater owners in June.

The quarter ended June 30 so the figures don’t reflect Deadpool & Wolverine‘s ($590 million so far) opening records in July, which will help boost the chain in its third quarter. Aron added, “Thanks to the success of Deadpool & Wolverinejust a week ago AMC recorded our highest-ever opening weekend attendance and highest-ever opening weekend admissions revenue for a rated-R movie.”

Aron said that the box office has turned a corner and that the industry will see significant revenues in the second half of the year. While he cautioned that the third quarter of this year may not overtake Q3 of 2023 — that frame featured both Barbie and Oppenheimer — he was bullish nonetheless.

More to come.