Two of the world’s largest cinema operators, AMC Theatres and Cinemark, held earnings calls on Friday, 5 May, reporting markedly improved performance which should go a long way in putting an end to any remaining doubt about whether movie theatres could ever return to a financial stability, if not growth.
AMC beat Wall Stret analyst forecasts on every front, posting a loss of 13 cents per share on revenue of USD $954 million during the first first quarter of 2023. That compares to a 26 cent per share loss during the same quarter last year on revenue which was USD $786 million, a 21% improvement. Adjusted earnings before interest and depreciation (EBITDA) improved by USD $68.8 million from a loss of USD $61.8 million during the first quarter of 2022 to a positive USD $7.1 million for Q1 2023. AMC burned through USD $189.9 million in cash over the most recent quarter and has liquidity of USD $496 million in cash and another USD $208 million in credit facilities.
Cinemark also beat Wall Street expectations by reporting a loss per share of 3 cents instead of a projected 30 cent loss. Revenue for the quarter rose 32% year-over-year to USD $611 million instead of the USD $569 million that had been forecasted. The company’s EBITDA for the first three months of 2023 actually increased by 240% over the same period from a year ago to USD $86.2 million, while cost of operations for the quarter was USD $582 million. Cinemark’s cash burn is down to USD $24.4 million during the quarter. It currently has USD $650 million in cash on hand giving the company plenty of runway to continue recovering from the pandemic.