AMC Entertainment Holdings Inc (AMC) Q2 2024 Earnings Call Highlights: Navigating Challenges ...

GuruFocus News
4 min read

In This Article:

  • Adjusted EBITDA: 84% drop compared to the same quarter last year.

  • Cash Reserves: Ended the second quarter with $770 million.

  • North American Market Share: Increased by approximately 50 basis points compared to last year.

  • Domestic Admissions Revenue: Declined by 25.6%, outpacing the industry box office decline of 27.2%.

  • Consolidated Revenue per Patron: $20.61, 33% higher than 2019 and 1.5% higher than the prior year.

  • Contribution Margin per Patron: $13.77, 41% higher than 2019 and 4.6% above the prior year.

  • North American Revenue per Patron: $22.36, 38% ahead of Q2 2019 and 2.8% ahead of Q2 2023.

  • Food and Beverage Revenue per Patron: Reached an all-time high of $8.34.

  • International Revenue per Patron (Constant Currency): $15.96, 20.8% ahead of Q2 2019.

  • Debt Refinancing: Extended maturity date of up to $2.45 billion of debt from 2026 to 2029 and 2030.

  • Net Cash Used in Operating Activities: $34.6 million for the quarter, $21 million better than Q2 2023.

  • Theater Portfolio: Closed nine underperforming locations, total net reduction of 118 locations since December 31, 2019.

Release Date: August 02, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • AMC Entertainment Holdings Inc (NYSE:AMC) ended the second quarter with $770 million in cash, providing a strong liquidity position.

  • The box office has shown signs of recovery, with significant successes from films like Disney and Pixar's Inside Out 2 and Universal's Despicable Me 4.

  • AMC set an all-time monthly adjusted EBITDA record for June, the best June in the company's 104-year history.

  • The company has successfully extended the maturity of $2.45 billion of its debt from 2026 to 2029 and 2030, providing financial breathing room.

  • AMC has increased its market share in North America, despite reducing its theater count, and has seen growth in revenue and profit per patron.

Negative Points

  • AMC reported an 84% drop in adjusted EBITDA for the quarter compared to the same quarter last year.

  • The North American box office was challenging in the first half of the year, with a 19% decline compared to the same period in 2023.

  • The company faces competitive pricing pressures in the UK market, impacting its ability to increase prices.

  • Despite improvements, AMC's domestic margins remain below pre-pandemic levels, with challenges in returning to mid-to-high teen margins.

  • The company continues to close underperforming locations, with a net reduction of 118 locations since the pandemic began.

Recommended Stories