AMC to Introduce Premium Pre-Movie Ads in Theaters

AMC Entertainment Holdings has reached an agreement with National CineMedia to run premium pre-movie ads on its theater screens starting July 1. The theater chain will receive a cut of the ad sales. AMC reported Q1 revenue of $862.5 million, down 9.3% YoY, but beat Street consensus estimates. The company expects the 2025 domestic box office to land at the upper end of its forecast, potentially $500 million to $1 billion higher than last year. AMC stock is up 1.76% at $3.46 at last check Thursday.

AMC Entertainment Holdings Inc. (AMC) has inked a deal with National CineMedia Inc. to introduce premium pre-movie advertisements in its theaters starting July 1. This strategic move is part of AMC's broader effort to boost in-theater advertising and capitalize on the recovering box office.

Under the agreement, AMC theaters will showcase a "platinum spot" ad before the start of each film. The theater chain will receive a share of the ad sales generated from these spots. National CineMedia, which operates an ad network in major theater chains including AMC, Cinemark Holdings Inc. (CNK), and Regal Cinemas, will handle the ad placements.

AMC reported its first-quarter revenue of $862.5 million, down 9.3% year-over-year (YoY) but exceeding Street consensus estimates of $837.1 million. The company also reported an adjusted loss of 58 cents per share for the quarter, beating the Street consensus estimate of 59 cents per share. Total attendance was 41.9 million in the first quarter, down 10.1%. U.S. attendance was 26.9 million, down 11.8%, while international attendance of 15.0 million was down 7.1%.

AMC expects the 2025 domestic box office to reach the upper end of its prior forecast, potentially $500 million to $1 billion higher than last year. The company's CEO, Adam Aron, remains optimistic about the rest of the year, citing a packed slate of major studio releases for the summer and beyond.

AMC stock is up 1.76% at $3.46 at last check Thursday, following the ad deal announcement. The stock has declined 34% in the last 12 months, reflecting the theater chain's struggles with weak box office performance since the COVID-19 pandemic.

[1] https://www.benzinga.com/markets/small-cap/25/06/45799991/amc-eyes-ad-revenue-lift-with-premium-pre-movie-ads
[2] https://www.gurufocus.com/news/2905894/amc-amc-partners-with-national-cinemedia-for-premovie-advertising-amc-stock-news