AMC Entertainment Holdings, Inc. Q1 FY2026 earnings call

AMC achieved best adjusted EBITDA first quarter since 2019 pre-pandemic, up $96M y/y. Driven by strong domestic and vastly improved European international results. First quarter box office was strongest starter in 7 years, 47.6M guests globally, up 13.6% y/y. On balance sheet, refinanced $400M debt due in 2027 to 2031, reduced annual cash interest expense, converting ~$155M debt to equity, raised ~$72M via at-the-market equity program in Q1, sold portion of Highcroft Mining holdings for ~$30M cash proceeds. In theater operations, closed 5 locations and opened 1 in Q1, net reduced 152 theaters since 2020. Launched Arena One at AMC, starting June, offering real-time interactive live concerts in over 300 theaters. Studio partners extending theatrical windows, Netflix planning global release of 'Narnia' with 49-day window, film producers达成 multi-year labor agreements.

AMC achieved its best adjusted EBITDA first quarter result since 2019 pre-pandemic, with an adjusted EBITDA improvement of some $96 million year over year during the quarter. Driven by strong domestic performance and vastly improved international results across the European footprint. The first quarter box office was the strongest starter year in seven years, welcoming 47.6 million guests to theaters across the globe, representing a 13.6% increase over last year. Domestic total revenue per patron is up 53% versus Q1 of pre-pandemic 2019, and domestic contribution margin per patron is up 67% compared to Q1 of pre-pandemic 2019. International revenue per patron is up 34.5%, or 31.4% in constant currency, versus Q1 of pre-pandemic 2019, and international contribution margin per patron is up 38.6% or 35.4% in constant currency compared to Q1 of pre-pandemic 2019.

Management expects full year 2026 box office could be $500M to $1.2B bigger than 2025. Last nine months of 2025 were free cash flow break even or positive. Arena One is expected to be a profitable activity with exclusive basis and great potential.

Numerous risks and uncertainties exist, including factors beyond company's control that may cause actual results to differ from forward-looking statements, such as movie box office performance, foreign currency exchange rates, theater operating cost control, labor agreement changes, studio movie release plan changes, and balance sheet related risks like debt repayment and refinancing uncertainties.

Q: Eric Wold on Arena One economics, technology spend, and domestic vs overseas contribution margin gap and overseas strategy.

A: Details on Arena One economics as rev share model, benefits for consumers, and on domestic vs overseas where US has different factors like screen advertising contract renegotiation and food and beverage merchandising progress in Europe.

Q: Mike Hickey on free cash flow milestones and Arena One impact on box office target.

A: Talk on reducing free cash flow break-even box office, last nine months of 2025 was free cash flow positive, and Arena One is rev share based with good economics.

Q: Brad Bainon on merchandising opportunities and debt convert reasoning.

A: On merchandising capable of 20% growth p.a., and debt convert due to mandatory conversion provision based on share price, taking $155.8M debt off balance sheet.

Q: Patrick Scholl on theater footprint right-sizing and window shift impact.

A: On theater footprint as perpetual strategy of renewing, negotiating, closing, and adding theaters, and on consumer relearning with two windows for movies.

Q: Retail question on key growth areas.

A: Mention of premium large format screens expansion, better seating at productive theaters, marketing program enhancements, Stubbs program evolutions, and pricing power in business.