AMC Entertainment Holdings 2025 Q1 Earnings Revenue Misses, Net Loss Widens 23.6%

AMC Entertainment Holdings (AMC) reported its fiscal 2025 Q1 earnings on May 07th, 2025. AMC Entertainment Holdings' Q1 2025 revenue of $862.50 million missed Wall Street's expectations, falling short of the previous year's $951.40 million. Despite the revenue miss, the company showed improvement in earnings per share, narrowing losses to $0.47 per share from $0.62 per share in Q1 2024. The CEO remains optimistic about future demand and growth opportunities.

Revenue

AMC Entertainment Holdings reported a 9.3% decline in total revenue for Q1 2025, totaling $862.50 million compared to $951.40 million in the same quarter of 2024. The revenue breakdown reveals that Flexibles generated $2.55 billion, while Admissions brought in $473.50 million. Food and beverage revenue amounted to $283.40 million, and Rigid Packaging contributed $801 million. Other theatre revenue reached $105.60 million, with net sales totaling $3.35 billion.

Earnings/Net Income

AMC narrowed its earnings per share loss to $0.47 in Q1 2025 from a $0.62 loss in Q1 2024, marking a 24.2% improvement. However, the net loss widened to $202.10 million, a 23.6% increase from the $163.50 million loss in Q1 2024. The EPS improvement is encouraging despite the larger net loss.

Post-Earnings Price Action Review

The strategy of purchasing AMC Entertainment Holdings shares following a quarter-over-quarter revenue drop and holding for 30 days has historically underperformed over the past five years. This approach resulted in a negative return of 31.81%, considerably lagging behind the benchmark return of 84.08%. The excess return was a disappointing -115.90%, with a compound annual growth rate of -7.40%, indicating substantial losses. This strategy also exhibited a significant maximum drawdown of -72.51% and a Sharpe ratio of -0.06, highlighting considerable risk and negative returns. Investors considering this strategy should be aware of its historically poor performance and associated risks.

CEO Commentary

Adam Aron, Chairman and CEO of AMC, emphasized that drawing conclusions about the success of movie theatres based on Q1 2025 results is misguided due to an industry-wide box office anomaly. While first-quarter performance was the lowest since 1996, demand surged since April, doubling box office results compared to the previous year. Aron highlighted the success of AMC's per-patron operating metrics, including record admissions revenue, reflecting the strength of the AMC brand and loyalty programs. He emphasized ongoing innovations in guest experience through enhanced seating and premium formats, positioning AMC favorably for future recovery.

Guidance

Aron indicated that AMC expects continued strong demand for moviegoing through 2025 and into 2026, driven by a robust slate of upcoming blockbuster releases. He stated, “We believe we will continue on our glidepath to recovering from the challenges that AMC has faced,” suggesting optimism for capturing momentum in the market. Aron also mentioned that despite challenges, AMC is committed to executing strategic initiatives that will support its recovery and growth trajectory in the coming years.

Additional News

In recent developments, AMC Entertainment Holdings announced the expansion of its Premium Large Format (PLF) and Extra Large Format (XLF) screens, with plans to increase from over 600 to more than 1,000 screens in the coming months and years. The company also introduced its first XLF screens in the U.S. and aims to deploy up to 50 or more XLF screens by the end of 2025. Additionally, AMC is experimenting with a two-person pod with a privacy shell in a U.K. theater, which has been well-received by consumers. These initiatives underscore AMC’s commitment to enhancing the moviegoing experience and maintaining its leadership in the theatrical exhibition industry.