Exhibition giant's shares are off in after-hours trading as profit falls by nearly half amid box office slump
The struggling domestic box office pushed AMC Entertainment's revenues down by 4.7 percent in the second quarter and profits plunged, the exhibition giant reported Wednesday.
With the overall box office running roughly seven percent from last year, AMC's profits fell by nearly half. Net earnings were $31.4 million, compared to $61.6 million for the same period last year, and diluted net earnings per share were 32 cents per share compared to 81 cents.
Revenues at the Leawood, Kansas-based movie chain for the three months ending June 30 fell to $726.6 million, compared to $762.7 million over the same period last year. Investors reacted quickly, and AMC stock fell 8.9 percent in early after-hours trading, then rebounded and was off 5.3 percent at $21.30 per share.
Admissions revenues in the quarter were $478.7 million compared to $515.3 million last year, despite an increase in the average ticket price to $9.55.
Food and beverage revenues helped soften the blow of the drop in admissions. They hit $211.6 million, and concessions revenues per patron increased by 4.5 percent to $4.22, representing the highest in the company's history.
Adjusted earnings before interest, taxes, dividends and amortization were $131.8 million, compared with $134.7 million for the quarter a year ago.
Last week the nation's biggest exhibition chain, Regal Entertainment Group, reported total revenue for its second quarter was down by nine percent.
AMC Entertainment is a subsidiary of China's Wanda Group., and operates roughly 5,000 screens at 346 locations in the U.S.