AMC Entertainment (AMC) Q3 2024 earnings summary

Executive summary

• Q3 2024 total revenues were $1.35 billion, down 4.1% year-over-year but up 31% from Q2 2024, with net loss of $20.7 million versus net earnings of $12.3 million in Q3 2023.

• Adjusted EBITDA was $161.8 million, down from $199.9 million in Q3 2023 but four times higher than Q2 2024, matching pre-pandemic Q3 2019 levels despite 25% lower attendance.

• Attendance declined 11.5% year-over-year to 65.1 million, but record admissions and food and beverage revenue per patron were achieved.

• Net loss narrowed by 37% sequentially, and operational efficiencies kept Adjusted EBITDA in line with pre-pandemic levels.

• Q3 2024 saw a strong box office recovery, with domestic industry revenue reaching $2.7 billion, up 37% from Q2 2024 and nearly matching pre-pandemic levels.

Financial highlights

• Q3 2024 admissions revenue fell 6.7% year-over-year; food and beverage revenue increased 1.6%; other theatre revenue declined 9.0%.

• Revenue per patron reached $20.72, up 8% year-over-year and 37.1% from 2019; contribution margin per patron was $13.49, up 8% year-over-year and 41% from 2019.

• Food and beverage revenue per patron hit $7.53 globally, $8.49 domestic, $5.07 international, up 14.8% year-over-year and 56.3% from 2019.

• Net cash used in operating activities was $(31.5) million in Q3 2024; cash and cash equivalents at quarter end were $527.4 million.

• Diluted loss per share was $(0.06), compared to earnings of $0.08 per share in Q3 2023.

Outlook and guidance

• Management expects industry-wide box office to rise markedly at year-end and continue improving through 2025 and 2026, driven by a robust slate of blockbuster and mid-sized films.

• Q4 2024 box office is expected to surpass Q4 2023, with major releases like Mufasa: The Lion King, Moana 2, and Wicked.

• AMC expects positive net cash from operating activities in Q4 2024.

• Management notes current cash burn rates are unsustainable long-term without revenue recovery to pre-pandemic levels.

• Risks remain around film release schedules, labor disruptions, and the pace of box office recovery.