Shares of AMC Entertainment Holdings (NYSE:AMC) Inc. rode a "Barbenheimer bounce" after the theater operator reported its best financial performance since 2019.
Blockbusters such as Barbie and Oppenheimer (which gave birth to the portmanteau term) along with the latest instalment of Mission Impossible, have packed in aisles in American theaters.
Second-quarter results exceeded expectations, driven by a 12% attendance increase and enhanced per-guest spending.
The company posted a net income of $8.6 million, a stark contrast to the $121.6 million loss the previous year.
Revenue rose 15.6% to $1.35 billion, buoyed by higher ticket prices and a 9.7% uptick in food and beverage revenue per patron.
CEO Adam Aron added a scoop of cold hard reality as he said AMC still faced liquidity challenges, emphasizing the need for capital raising.
As of June 30, 2023, AMC's liquidity was $643.4 million. A recent effort to convert AMC Preferred Equity units to common stock, aimed at debt reduction, was blocked.