Home Cinema AMC Offers Mixed Bag Of Popcorn In Q3 Results: Record Attendance But...

AMC Offers Mixed Bag Of Popcorn In Q3 Results: Record Attendance But Losses Wider Than Expected

215

Top exhibitor AMC Entertainment offered a mixed third-quarter report card, with attendance records and an eye-opening $120 million in revenue from its Stubs A-List subscription program but also losses that were wider than Wall Street was expecting.

Shares in AMC dropped 6% in after-hours trading. They closed at $18.13 during the regular trading session, down 1%.

Diluted losses per share increased by 49 cents to 82 cents during the quarter, wider than the 33 cents a share for the same period a year ago and bigger than analysts’ consensus of 47 cents. Included in the loss was what the company described as “an increase in fair value of our new derivative liability” linked to private equity firm Silver Lake’s infusion of $600 million earlier this fall.

Adam Aron, CEO and President of AMC and not one known for holding back, predicted that 2018 would be the best full year in the company’s 98-year history. He noted the third quarter also saw a strategic milestone for the exhibitor, with Silver Lake buying in and joining the board of directors. Unmentioned by Aron was AMC’s accompanying plan to buy back Class B shares controlled by Wanda, signaling a retreat by the Chinese conglomerate after six years in the U.S. exhibition sector.

Leave a Reply

avatar
  Subscribe  
Notify of

Spelling error report

The following text will be sent to our editors: