Blockbuster parade brings windfall to AMC

Only the joy of seeing Penelope reunite with Odysseus on IMAX is equal to what AMC Theaters is feeling right now. The world’s biggest cinema chain posted record quarterly earnings yesterday after several recent blockbusters convinced people to return to the movies.The overpriced popcorn purveyor reported that:Q2 revenue rose 14% compared with last year to nearly $1.6 billion, while adjusted earnings grew 70%.It had an adjusted EBITDA (basically profit without considering the interest on its massive debt) of $320.6 million…but it still actually lost money in part due to interest payments and other debt-related costs.AMC’s stock popped almost 27% yesterday as investors applauded its recovery from a yearslong audience slump.Audiences return for the magic must-watch moviesAttendance at AMC’s theaters rose 12% in the US and 18% abroad last quarter compared with the same time last year thanks to a parade of Hollywood hits. Blockbusters like Toy Story 5 and the breakout horror hits Backrooms and Obsession helped generate the biggest quarterly US box office in seven years.And the hot streak might continue: This weekend, 4.3 million people saw Christopher Nolan’s The Odyssey at AMC. More than half of those ticket receipts came from showtimes in premium auditoriums, and AMC said it’ll continue investing in elevated moviegoing experiences to juice revenue.However…some analysts are skeptical that the moviegoing momentum can be sustained, especially if next year has fewer splashy premieres.—SK