It’s no secret that the highs of the COVID-19 pandemic cost movie theater chain AMC an unprecedented amount of money. As people isolated at home and streaming services became the medium of choice for movie viewing, AMC theaters were shuttered long-term, costing the company a large chunk of their usual revenue, especially during the summer and holiday seasons. AMC theaters have only just reopened in full in the last year, but luckily for AMC, they had enough major blockbusters to get butts in seats.
According to a newly-released earnings report, AMC’s year-over-year revenue rose by $148.3 million in the first quarter of 2022 to $785.7 million, beating the $743 million analysts were expecting by a decent length. The chain is still operating at a net loss of $337.4 million, but that’s opposed to the $567.2 million recorded a year ago, which is still an improvement.
“Our results for the first quarter of 2022 represent AMC’s strongest first quarter in two full years,” AMC CEO Adam Aron said in a statement Monday.
“The cumulative success of ‘Spider-Man: No Way Home,’ ‘The Batman,’ ‘Sonic The Hedgehog 2’ and this past weekend’s opening of ‘Doctor Strange in the Multiverse of Madness,’ should leave no doubt about the enduring appeal of theatrical exhibition,” he said. “When Hollywood releases films that moviegoers want to see, people flock to cinemas in huge numbers to watch movies where they were designed to be seen, in theatres, on the big screen.”
$AMC shares are up on a narrower revenue beat and losses than previously projected, ahead of the summer blockbuster season. pic.twitter.com/AeU0ulKHXu
— Yahoo Finance (@YahooFinance) May 10, 2022
While these blockbuster films did bring in tens of millions in box office profits, AMC is still spending nearly a billion in operating costs, including space rentals, food, upkeep, and more. The upcoming summer film season will definitely be a make-or-break period for the theater industry.
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