AMC Entertainment’s chief executive warns that the 2024 strike will bring “unnecessary challenges” and calls on the parties to reach an agreement “immediately”.

AMC Entertainment turned a profit in its most recent quarter, posting a 45% increase in revenue, beating Wall Street forecasts. CEO Adam Aron found the figures “very satisfactory”. But, he said, the short-term impact of the writers’ and actors’ strikes will create additional and unnecessary challenges for AMC in 2024. Without taking sides on who is to blame and how to resolve the labor challenges, we encourage all parties to come to the negotiating table with the goal of reaching an immediate agreement.”

Exhibitors are extremely upset as films big and small keep pushing back their release dates and are reluctant to see theaters without actors to promote them.

AMC made solid progress last quarter, posting a profit of $12.3 million in the September quarter, compared with a loss of $227 million a year earlier. Sales rose to $1.4 billion. Barbie And Oppenheimer The highlights were the films released at the end of July. The results do not include Taylor Swift: The Eras Tour, which did not open until the end of the third quarter. Since opening on October 13, it has grossed around $232 million worldwide. Renaissance: A Beyoncé Movie debuts December 1. AMC sells both and starts a profitable new business.

Aron noted that AMC’s strong results “came at a time when our domestic theatrical admissions for the quarter were still 16% below comparable 2019 levels.” This success is due to our contribution per customer which increased compared to 2019 increased by 30%. Our overall profitability has improved in part due to all the actions we have taken over the past three and a half years, including innovative marketing and pricing initiatives, which have significantly improved per customer increases. Spending, particularly in our high-margin food and beverage businesses, to reduce our theater fleet through the closure of fringe theaters and the opening of successful new theaters, as well as a continued focus on controlling expenses in a difficult inflationary environment.

Diluted earnings per share improved $0.08 compared to negative $2.20 a year ago. Adjusted EBITDA increased from $12.9 million to $194 million.

Net cash from operating activities improved $289.5 million to $65.9 million. Cash flow was $108.7 million, an improvement of $287.9 ​​million compared to the prior year. Cash and cash equivalents were $729.7 million at September 30.

Regarding the strikes, he also said: “Without taking sides on who is to blame and how to solve the labor problems, we strongly encourage all parties involved to come to the negotiating table with the aim of reaching an agreement immediately reach.” Note that there has been and will continue to be a lot of collateral damage as a result of longer work stoppages. In the interest of everyone involved in the film ecosystem, this months-long disharmony must end now. Whether you look at it as a studio executive or as a union member in the creative community, it is critical that everyone in Hollywood rededicate themselves to the task of creating world-class entertainment that will be admired and immensely enjoyed around the world. “

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