AMC Entertainment delivers record Q2 results as summer releases boost results

AMC Entertainment Holdings ( NYSE:AMC ) shares rose 11% after the movie theater chain reported second-quarter results that exceeded Wall Street expectations, driven by a strong slate of summer blockbuster releases. The company reported adjusted earnings per share of $0.14 for the quarter ended June 30, compared with analysts' expectations for a loss of $0.02 per share. Revenue increased 14.2% year over year to a record $1.60 billion, above the consensus estimate of $1.47 billion. AMC said the quarter marked the highest quarterly revenue and adjusted EBITDA in its 106-year history. Adjusted EBITDA rose 69.6% from a year earlier to $321.4 million, while adjusted net earnings were $104.3 million, compared with an adjusted net loss of $0.5 million in the prior-year period. The company reported a net loss of $11.4 million, compared with a net loss of $4.7 million a year earlier. Cash and cash equivalents increased to $778.4 million at the end of the quarter from $423.7 million a year earlier. AMC attributed the strong performance to robust box office demand, noting that six films generated domestic opening weekend box office receipts exceeding $75 million during the second quarter. The company also pointed to growth across its US and European operations, with domestic revenue rising 13% and European attendance increasing 17.9% year over year. AMC CEO Adam Aron said that the results demonstrated the operating leverage of AMC's business model as revenue increased, highlighting record quarterly revenue and adjusted EBITDA alongside $190.1 million in free cash flow.