What happened
Shares of AMC Entertainment Holdings (AMC 4.61%) were trading down 2.6% as of 11:43 a.m. ET on Wednesday. The largest theater chain in the U.S. reported fourth-quarter earnings that met analysts' expectations.
NYSE: AMC
Key Data Points
So what
Revenue was in line with the Street's estimate, coming in at $1.17 billion, compared to just $162 million in the same quarter a year ago when theaters were shut down. The company was operating 593 domestic theaters and 337 international theaters at the end of December.
The latest results compare to revenue of $1.4 billion in Q4 2019, when AMC operated 636 domestic theaters and 368 international.
AMC benefited from a strong film slate in the recent quarter that saw the third-highest grossing movie of all-time in the release of Spider-Man: No Way Home. Management credited that release, along with pent-up demand and a bold advertising campaign, for attracting 60 million visitors to its theaters around the world. That represented a 50% increase over the previous quarter.
Image source: Getty Images.
Now what
AMC finds itself in a much stronger position financially than it did a year ago. Last year, thanks to AMC's meme status, the share price skyrocketed, and management wisely took advantage of the demand for its stock by issuing $1.5 billion worth of new shares. With more cash sitting in the bank and profits recovering, management plans to go on offense in 2022.
New growth initiatives include opening "nicely profitable theatres" around the world and dipping its toe into the digital economy. AMC plans to launch four separate non-fungible token programs, accept cryptocurrency for the first time, and enter the "multibillion-dollar retail popcorn industry" for good measure.
2022 should be a good year, with a strong slate of new films, including The Batman, Top Gun: Maverick, Jurassic World Dominion, Black Panther: Wakanda Forever, and Avatar 2.
