A series of blockbuster films, several from Walt Disney Co., is spurring higher ticket sales and boosting food and beverage purchases at AMC Theatres, helping the movie theater chain more than double its profit.
Net income climbed to $17.7 million, or 14 cents a share, for the quarter that ended on March 31, while revenue rose 8 percent to $1.3 million, the Leawood, Kan.-based company said in a statement Monday.
AMC Theatres cited the recent success of Disney films like “Star Wars: The Last Jedi” and “Black Panther” – which have each garnered over $1 billion in ticket sales globally – as key reasons for recent growth. Admissions revenue grew 7 percent to $875 million, and food and beverage sales increased 2.1 percent to $405.8 million.
“It is clear and unmistakable that movie fans overwhelmingly flock to theaters when tempted by great cinematic storytellers,” chief executive officer Adam Aron said in a statement. “We are confident that the pedigree of franchises from which a dazzling array of films will be released over the next several months has the potential to propel the industry and AMC even higher.”
Indeed, “Avengers: Infinity War,” which opened in late April, has already broken records, Aron noted, and upcoming films such as “Jurassic World: Fallen Kingdom,” “Deadpool 2,” “Incredibles 2” and the female-led “Ocean’s 8” should lure even more guests. “The potential in this lineup is amazing,” Aron told investors. “Theatrical exhibition is alive and well.”
AMC has climbed 5.5 percent to $17.20 in New York trading since the end of 2017. Earlier this year, the company opened its first movie theater in Saudi Arabia in 37 years.
The country screened a censored version of “Black Panther,” the first commercial film publicly shown in over 30 years, last month.
