AMC Adjusted EBITDA Hits Record High as International Growth Accelerates
The cinema chain reported Adjusted EBITDA of $321.4 million for the second quarter.
Amc Entertainment Holdings (AMC) reported a record Adjusted EBITDA of $321.4 million for the second quarter.
The results marked a shift in the company's financial trajectory, as the cinema operator surpassed the $300 million Adjusted EBITDA threshold for the first time in its history. This growth occurred alongside a significant strengthening of the company's balance sheet and a reduction in immediate debt obligations.
Total revenues rose 14.2% to $1,596.7 million. The company reported a consolidated Adjusted EBITDA margin of 20.1%, an increase from 13.6% in the same period last year. Despite these gains, the company reported a net loss of $11.4 million, which widened from a loss of $4.7 million in the prior-year quarter.
Growth was driven largely by international markets, where attendance rose 17.9% and Adjusted EBITDA increased 336.7% YoY. In the U.S., domestic revenues grew 13.0%, a rate that exceeded the industry-wide domestic box office growth of 10.7%. The company also saw its contribution margin per patron rise to $14.71 from $14.48, even as its average screen count declined 1.6% to 9,249.
Cash and cash equivalents rose 83.7% to $778.4 million as of June 30. Free cash flow for the quarter increased to $190.1 million, compared to $88.9 million in the prior-year period.
The company has reduced its principal debt balances by approximately $1.7 billion since the end of 2020, leaving no expected debt maturities until 2029. During the second quarter, AMC refinanced $400 million of debt to extend maturities by four years, which reduced annual cash interest expense by $16 million.
AMC expects an additional reduction in annual interest expense of approximately $51 million. This reduction is due to lower interest rates triggered by improved leverage ratios on roughly 75% of its debt.