Thank god for “Suicide Squad.”
Reporting a record-setting third quarter across all business segments, AMC Entertainment made a revenue of $779.8 million and earnings of 31 cents a share, the company said on Monday.
That represents a 13.2 percent increase from the same period a year ago, when it recorded $689 million in revenue. It’s also a huge 158.3 percent increase over the 12 cents a share reported in Q3 2015.
Revenue came in just shy of analyst estimates of $782 million; but the company was more profitable than Wall Street expected, coming in well ahead of predictions of 27 cents a share.
The gains coincide with the summer box office’s strong finish, led by Universal’s animated hit “The Secret Life of Pets” and the Warner Bros. hit comic book movie “Suicide Squad.” “Jason Bourne,” “Star Trek Beyond” and Q2 holdover “Finding Dory” were also top performers in Q3.
AMC CEO Adam Aron also credits the company’s strong Q3 to progress in database marketing efforts, innovations in food and beverage services, recliner seating renovations and premium large format auditoriums.
“AMC Stubs was overwhelmingly received by guests as we blew through the 4 million active household member mark by late September and as of today exceeds 4.5 million household members,” he said on Monday. “Scores of new guests were also introduced to the imaginative AMC theater experience in the third quarter.”
As two major acquisitions are currently in motion, the Leawood, Kan. theater chain is soon to be the biggest movie theater company in the world.
The company set Q3 revenue records in all business segments, including admissions (up 12.6 percent) and also food and beverage (up 14.8 percent).
The company’s stock has risen more than 20 percent over the past year, coinciding with the company’s plans for massive growth.
AMC issued $1.4 billion in new debt in late October in order to finance a total of two billion-dollar acquisitions it has agreed on this year.
In July, AMC — which is owned by Chinese entertainment giant Dalian Wanda Group — agreed to buy British theater chain Odeon & UCI in a deal valued at $1.2 billion. That same month, the board of Carmike Cinemas, the U.S.’ fourth-largest exhibitor, agreed to accept AMC’s second and sweetened offer for an aforementioned $1.2 billion.
The Carmike acquisition would make AMC the country’s biggest theatrical exhibitor, passing current No. 1 Regal Cinemas. Combined, Odeon and Carmike control more than 5,000 screens, and completing both deals would make AMC parent Wanda — which also owns China’s biggest theater chain — the first exhibitor to manage more than 10,000 screens worldwide.