AMC ENTERTAINMENT HOLDINGS, INC. Q4 FY2024 earnings call

• Fourth quarter was boosted by hit movies like Gladiator 2, Wicked, and Moana 2, with 62.4 million guests globally, a post-pandemic fourth quarter record. Food and beverage revenue per patron hit $7.15, an all-time fourth quarter high.
• Full year 2024 saw AMC achieve all-time per patron records on key metrics, and the balance sheet was strengthened through debt reduction, maturity lengthening, and cash reserve bolstering.
• AMC GO Plan initiatives: Upgrading premium experiences (IMAX with Laser, Dolby Cinema, XL screens), improving seating comfort in profitable theaters, and enhancing loyalty programs (launch of Premier Go tier, updates to A-List program).

In the fourth quarter, AMC's revenue was up 18% year-over-year to $1.3 billion, with adjusted EBITDA reaching $164.8 million, more than triple the prior year's fourth quarter. For the full year 2024, AMC welcomed 224 million moviegoers globally, achieving all-time per patron records for admissions, food and beverage, and total revenue per patron. Domestically, adjusted EBITDA tripled to $123 million, and internationally, it increased more than fourfold to $41.8 million. Revenue contribution from various segments showed strong performance driven by robust movie attendance and food/beverage sales.

• Anticipate 2025 domestic industry box office to grow by $0.5 billion to $1 billion compared to 2024.
• Expect box office to strengthen sequentially, with Q2 and Q3 expected to outpace Q1, and 2026 to be bigger than 2025 due to a robust movie slate.
• Projections indicate increasing wide-release films in 2025, contributing to box office growth.

• Domestic industry-wide movie theater attendance remains almost 40% below pre-pandemic levels, stressing ticket and food/beverage revenues.
• Uncertainties in studio release patterns and short windowing of movies to streaming platforms impacting theater profitability.

Q: On the AMC GO Plan, if box office growth materializes, when will CapEx rise?

A: CapEx is expected to stay around $200 million until growth capital is accessible. We are exploring third-party financing options for growth.

Q: Thoughts on the dynamic between streaming and theaters?

A: Some streamers like Apple and Amazon embrace theatrical releases, while Netflix is less enthusiastic. Believes both theatrical and streaming can coexist.

Q: Update on movie-themed merchandising and popcorn?

A: Movie-themed merchandise sales doubled in 2024; plans to increase quantities. Popcorn line successful, with new flavors like Cinnamon Butter launched.

Q: Opportunities to negotiate longer windows for theatrical releases?

A: Push for longer windows to benefit both theaters and studios, as longer windows can boost revenues for both.

Q: When will the industry box office reach steady state?

A: Believes box office will continue to grow in 2025 and 2026 due to a strong movie slate, with 2026 expected to be bigger than 2025.