Lack of summer blockbusters calls cut on AMC Entertainment's second quarter profits

Francesca Washtell
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The World Premiere Of Disney-Pixar's 'Finding Dory'
Finding Dory has been pegged as one of the summer's animated blockbusters (Source: Getty)

Global cinema giant AMC Entertainment's profits and sales dived in the second quarter after the operator was blighted by a dearth of blockbuster hits and lower footfall.

The figures

AMC's total revenues fell seven per cent to $764m (£577m) in the second quarter ended 30 June. This was down from $821.1m in the same period of last year, while analysts had forecast turnover of $774.3m.

Net income nosedived 45 per cent to $24m, from $43.9m last year, driven by a dip in admissions revenues. These fell to $481.2m compared to $533.4m in the second quarter of 2015.

In the six months to 30 June, total revenues increased 3.8 per cent to $1.53bn.

The average ticket price also slid lower to $9.63 compared to $9.91 a year ago between April and June.

Read more: Is there really room for a sequel now we've already found Nemo?

Food and beverage revenues per customer bucked the second quarter-trend and increased 4.7 per cent to an all-time high of $4.87.

However, total food and drink sales still dipped almost three per cent to $243.5m.

Adjusted earnings per share halved year-on-year to $0.24.

Why it's interesting

Although the numbers were down almost across the board in the second quarter, the group's investment in its food and drink offerings paid off in one of the only areas to register growth.

Chief executive Adam Aron also singled out the company's investment efforts to renovate its cinemas as another success in the quarter, having ploughed money into "recliner seats, premium large format auditoriums and a refreshed overall decor".

Read more: The iconic Empire Theatre in Leicester Square has just been sold to Cineworld

The firm is still pursuing a proactive acquisition strategy, announcing since the quarter ended that it will buy the Odeon cinema chain from private equity group Terra Firma for £921m and US cinema chain Carmike Cinemas for $1.2bn.

It has also revamped its Stubs loyalty programme in a bid to attract return customers.

The group said a trial of the new programme in 40 theatres across six markets had proven so successful it is now being rolled out across its network.

What AMC said

Aron said:

It would ordinarily be difficult to be pleased with a quarter in which a lacklustre film slate caused us to share in the industrywide box office revenue decline that was down domestically some 10.7 per cent per screen year-over-year.

However, we are encouraged that this trend has already reversed itself with industry box office revenues up more than seven per cent as of 29 July, and a potentially record setting film slate being close at hand for calendar year 2017.

In short

Falling numbers almost across the board in the second quarter, but it's likely to be the exception rather than the rule.

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