AMC (NYSE:AMC) slid Monday morning, after the movie theater chain said it reached an agreement to settle a shareholder class action against the conversion of AMC Preferred Equity Units into common company shares, as well as a reverse stock split. Investors approved the decision in March.
Meantime, the cinema chain attributed its second straight quarter of positive adjusted EBITDA since the start of the pandemic to ongoing recovery in the box office.
Economic figures came out Friday, in which the company lost $235.5 million versus the year-ago $337.4 million. Per-share loss also narrowed from 33 cents to 17 cents
Revenue went up 21.5% year-on-year to $954.4 million.
Those revenues grew even though the quarter hadn't yet accounted for the April opening of The Super Mario Bros. Movie, the year's biggest film to date with nearly a half-billion dollars in domestic grosses and more than $1 Billion worldwide, not to mention the upcoming summer release season.
The figure benefited from a seasonal release schedule, with the number of releases for Q1 up 35% compared to the same quarter in 2022.
More importantly, Geetha Ranganathan of Bloomberg Intelligence is confident that movie entertainment will hold up well in the midst of an economic downturn.
Movie-going tends to be a cheaper form of entertainment. It has held up very well even during recessionary periods.
Year-to-date, AMC shares are currently up about 45%.
Monday morning, those shares let go of one cent to $5.88.
