AMC's 2025 Q2 Earnings Call: Unraveling Contradictions in Premium Formats, Pricing Strategies, and Expansion Plans

Revenue and Attendance Growth:
- AMC Entertainment reported a 35.6% increase in consolidated revenue for the second quarter of 2025 compared to the same period last year.
- Global attendance increased by 25.6%, with 63 million guests visiting AMC and Odeon theaters.
- The growth was driven by strong industry-wide box office performance, with the second quarter domestic industry box office surpassing the first quarter by 85%, and by AMC's market share outperforming in many movies due to its premium large-format screens and effective marketing programs.

Adjusted EBITDA Improvement:
- AMC's adjusted EBITDA grew by 391.4% to $189.2 million in the second quarter of 2025 compared to the previous year.
- The significant increase was due to strong revenue growth and tight cost control, leading to a $150.7 million improvement in adjusted EBITDA compared to the prior year.
- This improvement was a result of operating leverage inherent in the business, which allowed AMC's EBITDA to soar as revenues grew.

Movie and Ticket Pricing Strategy:
- AMC introduced a new 50% off ticket pricing strategy on Tuesdays and Wednesdays, which has shown early signs of increased attendance.
- The company successfully raised ticket prices on other days of the week without pushback, with average ticket prices in the U.S. exceeding those of competitors.
- This strategy is supported by the success of premium large-format screens, which demonstrate consumer willingness to pay more for better experiences.

Marketing and Loyalty Programs:
- AMC's loyalty programs, including AMC Stubs and A-List, continue to grow, with active membership in the new VIP tier surpassing 0.5 million.
- Paid membership in A-List increased by 15% year-over-year, indicating strong consumer appeal, particularly among younger generations.
- The focus on creating appealing experiences, such as offering more premium screens and enhanced marketing campaigns, has driven these membership improvements.