Shares in AMC Entertainment Holdings Inc (NYSE:AMC) flicked higher in premarket trade on Wednesday after the largest cinema chain in the US topped expectations with its fourth-quarter revenue.
The Leawood, Kansas-based group said it set fourth-quarter records across all sales categories, including admissions and concessions, in the three months ended December 31.
Total revenues increased by 53% to US$1.42bn (Q4 2016: US$926.1mln), with almost US$1bn of that coming from its North American theatres.
Admission revenues soared by 52% to US$897.1mln (Q4 2016: US$588.8mln), while food and beverage sales jumped 47% to US$415.3mln (Q4 2016: US$282.5mln).
Quarterly sales were slightly better than Wall Street had expected, with analysts on average forecasting US$1.407bn.
Acquisitions fuel growth
The strong growth was largely down to AMC’s acquisitions of Odeon Cinemas, Carmike Cinemas and Nordic Cinema Group last year.
The company swung to a net loss of US$276.4mln, or US$2.14 a share, in the quarter, after earning US$29.0mln, or 29 cents, in the year-ago period.
“The acquisitions of Odeon, Carmike and Nordic, and the investments we made during 2017, both domestically and internationally, together with previously announced revenue enhancements and cost controls drove record revenues and improved operating margins in the fourth quarter,” said president and chief executive Adam Aron.
“As we look forward to 2018 and beyond, we are pleased and greatly encouraged by the progress we made during and since the fourth quarter of 2017, both operationally and in dealing with several specific industry challenges.”
AMC shares gained 4% to US$15.60 in premarket trade on Wednesday.