AMC Entertainment Holdings Inc recently posted its quarterly revenue report, revealing it beat previous revenue estimates. The movie theater company also didn’t experience a huge loss, posting a much smaller than expected loss as theater goers finally flock back to the theaters to watch films.
AMC and other movie theater companies were greatly hit when the COVID-19 pandemic first started. Movies that were supposed to be released were canceled, and big budget productions — the type of films that brought in crowds and a lot of revenue for these companies — were put on hold or given streaming releases on the same day as theater releases.
As a result, movie theaters were hit hard throughout the beginning stages of the pandemic, as well as into 2021. Even early in 2021, when vaccinated Americans were spending more money on goods and services, movie theaters still failed to show that they were doing well.
Now, however, this latest revenue report from AMC seems to hint that this has changed. AMC is thew world’s largest movie theater company and has greatly struggled because of the pandemic. According to their latest report, movies like Shang-Chi and the Legend of the Ten Rings and Black Widow have helped bring movie watchers back into theaters.
AMC’s revenue rose to about $763.2 million — up from $119.5 million. Revenue beat initial estimates of about $708.3 million. Revenue from food and beverage sales sold at the theaters jumped to $265.2 million. Meanwhile, AMC’s net loss narrowed to about $224.2 million for the third quarter. Last year, AMC’s net loss was at $905.8 million for the third quarter of 2020.
Of all the newest movies released since the pandemic, Shang-Chi and the Legend of the Ten Rings was one of the beggest grossers that helped to bring in many theater goers during the Labor Day weekend. More big budget films are being set to be released in the coming months of 2021, which may continue to help AMC recover from the losses incurred during the COVID-19 pandemic.
However, AMC and other movie theater companies are still wary of what the future may hold. While people are finally flocking to watch movies in theaters again, there are still concerns that things may change in the near or far future. However, AMC recognizes that there may still be challenges ahead of the company that will have to be dealt with, especially when it comes to the COVID pandemic.
Restrictions and shut downs, however, seem to be behind the company in the United States for now. In the rest of the world, this varies from case to case. As AMC conducts business around the world, the company will have to learn how to strive amid these regulations and potential shut downs. However, as long as big budget movies continue to be released — and as long as AMC airs them at their theaters — then the company may be well on its return to prepandemic numbers.