AMC Entertainment Holdings' revenue in Q4 2024 increased by 18% compared to the same period last year.
1min read AMC Entertainment Holdings, Inc. experienced a significant increase in revenue in Q4 2024, but its stock price continued to decline. Despite industry challenges, amc achieved record revenue and attendance in Q4 2024 while reducing debt and increasing EBITDA (earnings before interest, taxes, depreciation, and amortization). However, the market reaction was cautious, and the stock price continued to decline.AMC achieved its best revenue and attendance since the pandemic in Q4 2024. Revenue grew 18% year-on-year to $1.31 billion; attendance reached 62 million, up 20% year-on-year. Adjusted EBITDA more than tripled to $164.8 million. Operating cash flow exceeded $200 million, and free cash flow reached $114 million, both at record levels since the pandemic. The company also reduced its principal debt by $375.9 million in 2024.Despite the positive results, AMC's stock price has fallen more than 20% year-to-date. The market remains cautious about its future prospects, with some analysts maintaining a cautious stance on its stock. The cinema industry faces numerous challenges, such as a decrease in attendance since the pandemic and a shortened movie window. Attendance at domestic cinemas is still down nearly 40% from pre-pandemic levels in 2019. Additionally, the 2023 Hollywood strike affected movie releases and box office revenue in the first half of 2024.Jason Bazinet of citigroup reiterated a "sell" rating on AMC with a target price of $2.90, noting that while fourth-quarter revenue and adjusted EBITDA exceeded market expectations, the decline in U.S. attendance and franchise revenue was concerning. Bazinet also emphasized that AMC's lack of specific future performance guidance led to uncertainty about its prospects.