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Theatre chain AMC (AMC) -5% but ticket sales, revenue soar in Q2
‘Meme’ stock AMC (AMC) traded down on Tuesday despite a strong rebound in revenues in Q2 as its CEO warned that its pandemic “journey” may not be finished just yet.
AMC (AMC) posted Q2 beats on Tuesday, but the American movie theatre chain’s shares dipped 5% in trading after its CEO warned that it was “not yet out of the woods” following its pandemic “journey”.
AMC, like GameStop (GME), has become synonymous with the ‘meme’ stock movement and its shares have skyrocketed 1,500% since January.
Its latest report suggested that there is substance to go along with the hype as a $0.71 per share loss beat the -$0.91 consensus, while revenue of $444.7m breezed past the $382.1m forecasts.
After an incredibly challenging 2020 marred by the pandemic, AMC said that 22 million people visited its theatres during the latest quarter, up from the 14 million in Q1.
Central to that spike was a full reopening of theatres, with all 593 of its locations in the US showing movies and 95% globally.
While cinemas are finally bouncing back, CEO Adam Aron struck a cautious tone on a conference call.
He admitted that AMC is “still losing money”, but after a healthier Q2, he believes that there is now a “light at the end of the tunnel”.
The optimism is backed up by tentative guidance for a return to profit by Q4, with rising attendance, ticket prices and snack sales central to its momentum.
Aron also said that the firm had taken some of the ideas suggested by new investors on board, including the prospect of showing sports and gaming events at cinemas.
AMC will also show the entire slate of Warner Bros. movies exclusively in theatres for 45 days next year after reaching an agreement with the studio.
AMC shares were volatile on Tuesday though after rising early before slumping 4.81% to $32.17 after midday in New York.
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