AMC Entertainment Reports Declining Quarterly Earnings
On the bright side, seating improvements at movie theaters are boosting attendance
Movie-exhibition company AMC Entertainment reported declining revenue and earnings for the third quarter.
Revenue dropped to $634 million from $696 million a year earlier while earnings from continuing operations were $7.4 million, down from $33.9 million, the company said Tuesday.
The company said that food and beverage revenue fell to $189 million from $202 million a year ago even though per-patron spending for concessions rose 10 percent to $4.29.
Ticket revenue dropped to $417 million from $467 million a year ago even though the average price of a ticket increased 5 percent to $9.48.
The film-exhibition industry has been having a lackluster year as box-office revenue has been weak. In North America, it dropped off 15 percent this summer compared with last summer.
AMC CEO Gerry Lopez said that the 48 theaters that have completed their seating upgrades saw admissions increase 14 percent.
Shares of AMC were up 3 percent to $24.40 on Tuesday and unchanged after the closing bell.
On Monday, rival Regal Entertainment Group also reported declining profit and revenue, though its stock soared 15 percent in after-hours trading because the company revealed it was interested in seeking a buyer.