Investment.com — As a series of Hollywood blockbusters lured a flood of moviegoers to return to the big screen, AMC Entertainment revealed Thursday narrower-than-expected losses.
Following the report, AMC Entertainment (NYSE: AMC) fell more than 5%.
Compared to $0.71 a year earlier, the company’s second-quarter loss was $0.20 per share. Revenue increased from $444.7 million to $1.17 billion over the previous year. Analysts anticipated a loss of $0.23 per share on $1.17 billion in revenue.
According to the corporation, losses on its investment in Hycroft Mining Company contributed to the bottom-line shortfall. “We wiped down much of the significant gains in Hycroft Mining Company that were booked in the first quarter of 2022,” it continued.
The ongoing recovery from the Covid-19 outbreak, when lockdowns closed movie theaters nationwide, explains the better-than-expected outcomes.
As moviegoers flocked to watch the newest movies including Doctor Stephen Strange, Tom Maverick Cruise, Elvis Presley, and all those hungry people-eating Jurassic dinosaurs, attendance shot up to roughly 59 million in Q2, up 168% from the same period previous year.
According to the company’s forecast, the lack of new movie releases in August and September will cause a slowdown for a few weeks, but the fourth quarter will see an increase in the movie slate.