Cinema chain AMC Entertainment Holdings (NYSE:AMC) continues to be plagued by a jumbo debt pile, although the meme stock favourite’s third-quarter results show progress is being made.
Total corporate borrowings currently stand at $4.14 billion, down from $4.58 billion at the start of the year.
AMC has also kicked a 2026 debt deadline into the long grass through a $2.4 billion refinancing that will see maturities extended from 2026 to between 2029 and 2030.
Chief executive Adam Aron said he was “almost euphoric about the vital improvements lodged at AMC Entertainment during the third quarter of 2024”.
He highlighted a 31% sequential improvement in revenues from the second quarter to justify his elation.
“Admittedly, some of our third quarter metrics of 2024 were behind those of last year,” he added.
In fact, they all were on a year-on-year basis, including total revenues (down 4.1% to $1.35 billion), net losses of $20.7 million (compared to a 33% profit) and net cash outflows of $31.5 million (compared to inflows of $65.9 million).
Of greater importance for Aron, however, “is our bullishness about the impressive movie slate that is coming to our theatres in November and December of 2024, and continuing in 2025 and again in 2026”.
“Based on what we know now, we expect that the industry-wide box office should markedly rise at year-end and rise yet again for the next two years,” he added.
Upcoming blockbusters include Gladiator II, Paddington in Peru and new Lord of the Rings animated feature The War of the Rohirrim.