Q2 2025 AMC Entertainment Holdings Inc Earnings Call
And the effectiveness of our compelling marketing programs.
In this year's second quarter.
C N Odeon rolled out the red carpet for nearly 63.
Millions yes.
A 25, 6% increase.
Over the same period last year.
Beyond merely attaining that attendance growth.
<unk> revenue growth was actually 35, 6% above.
Above last year's second quarter.
Adding in our very tight control of our costs.
AMC drove an adjusted EBITDA increase of.
391, 4%.
Through our highly gratifying $189 $2 million.
That's a good formula revenues way up combined with quite a tight management of costs.
And it generated a $157 million more adjusted EBITDA.
In this year's second quarter.
We've posted in last year's second quarter.
It is a simple reality.
Hopefully a harbinger of things to come.
Amc's revenues grow.
Our EBITDA can soar.
With such a sizable increase in adjusted EBITDA.
From $38 million in change last year to $189 million and change this year.
Our net cash provided by Amc's operating periods of the quarter surged to a positive $138 4 million such a dramatic turnaround from last year's net cash use in second quarter operating activities of $34 6 million.
That's a total favorable swing.
$173 million improvement.
Quarter over quarter.
I would like to repeat those numbers so that all of you on this call and all the onerous webcast hear them very clearly.
In the second quarter of 2025, AMC Entertainment delivered.
At 25, 6% increase in global attendance above that in Q2 24 consolidated revenue growth of 35, 6% versus Q2 of 'twenty four consolidated adjusted EBITDA growth of 391, 4% versus Q2 of 2024.
AMC.
$189 2 million.
Adjusted EBITDA in Q2, 2025 was just a hair under.
Five times.
The adjusted EBITDA of Q2 2020 for cash.
Cash generated from our operating activities.
A positive $138 4 million showed a favorable swing of $173 million.
In this year's Q2 versus Q2 of 'twenty four.
Needless to say.
It's all smiles at AMC today.
Our second quarter results are a combination of a recovering energy wide box office.
And the undeniable fact that both AMC and Odeon are executing so well in so many different ways. Indeed.
Indeed, we shattered all time revenue records across nearly every per patron metrics.
As for the strengthening engie wide box office.
We firmly believe that.
This was not a short lived spike, but rather the beginning of a sustained and powerful resurgence.
For our entire industry.
So that expectations are set correctly.
Fox office in the current third quarter will only be show, so given some seasonal but not alarming softness.
But hold on to your hats for the size of the box office in the fourth quarter of 2025.
Hello, Disney's Avatar fire Nash trial, Aries and Zootopia.
<unk> two <unk>.
Hello, Universal's Wicked for good and five nights at Freddy's too.
Hello, Glenn Powell in Paramount, so running them and Hello to so many other wonderful films that will be hitting the big screens in theaters from so many of our studio partners in the fourth quarter of this year.
In total.
It sure looks like 2025 is shaping up to be the biggest pandemic box office year yet.
And one which we believe will be some 500 million to $900 million more.
And that of full year 2024.
Even more compelling.
Is the currently envisioned 12 months run rate.
For theatrical movie going after taking out the weak Q1 of 2025 and replacing it with a much stronger Q1 that we anticipate for 2026.
Perhaps with an occasional blip here or there we expect through 2026 box office will radiate with great strength and resonate with theatrical moviegoers pretty much all year long.
Of particular note.
This year in 2025, the first quarter was terribly weak.
In 2020, Six's first quarter by contrast.
We will see the spillover benefits from Avatar fire and actually December 2025 openings, which in our view should greatly helped to boost the Q1 2026 box office back up to a much healthier level that should start the year of 2026 off right.
We are highly encouraged by the extraordinary slate of films being released throughout the full year.
It's our view.
And we are far from alone this optimism for 2026.
But the 26 box office will be considerably larger.
And that of 2025.
Turning back to the performance of AMC and Odeon, specifically in the just completed quarter.
We set record after record in this year's second quarter.
For the first time ever.
Amc's consolidated admissions revenue per patron top $12 coming in at $12 14.
Our consolidated food and beverage revenue per guest jumped to a record of 795.
And our total consolidated revenue per patron at AMC.
And Odeon hit an unprecedented $22 26 for us.
We believe that these new records powerfully validate.
The rationale behind our various strategic initiatives.
And the fact that consumers view movie going at AMC Odeon to be highly attractive out of home entertainment experiences.
In addition to setting new operational records during the quarter and delivering a powerful earnings reported result.
Just as important we continue to fortify our balance sheet as you know in July we.
We just closed a series of transformative transactions.
<unk> was even more than $240 million in cash from new debt issuance and the acquisition of at least $143 million in debt with the potential of the equity is even more up.
Up to a total of $337 million.
We have now addressed all of our 2026 debt maturities or pushing them out to 'twenty eight 'twenty nine that's four years from now.
In so doing.
We've put in place a solid foundation to capitalize on what we believe will be our industries continued growth momentum and our company's continued growth momentum.
It should be especially evident.
In the fourth quarter of 2025, and continuing deeply into 2026.
If I had to pick out just one set of words to characterize amc's strong performance in the second quarter of 2025.
And our optimism and our confidence about Amc's expected performance for 2026.
It would be this.
And I quote myself.
Impressive operating leverage.
As Amc's revenues grow.
Our EBITDA at AMC can soar.
I'll now pass this call and webcast over to Sean Goodman, our CFO to provide more detail on the financial results after which I'll return to provide an update on the AMC go plan and others of our strategic initiatives Sean.
Thanks, Adam and thank you everyone for joining us this afternoon.
We are pleased to report a quarter in which add Adam just noted the team set a number of very impressive records about across both our domestic and international operations.
Substantial year over year.
Industry growth drove our attendance growth, which when coupled with a record breaking per patron revenue and perfect from profit.
Well bid in an outstanding set of results for the second quarter.
Allow me to elaborate and comparing consolidated results for Q2 2025.
Q2 of 2024.
Rather the Tandems Rose 25, 6% as we welcomed 63 million moving to our theaters.
Total revenue grew by 35, 6% or 34, 1% in constant currency, reaching $1 $4 billion.
And EBITDA grew four fold to $189 $2 million and we generated free cash flow of $89 million and 168 million improvement compared to the prior year's second quarter.
These results were achieved through admissions revenue perpetual growth of seven 5%.
Or six 2% in constant currency.
The all time record of $12.14 at the same time food and beverage revenue per patron climbed eight 3% or seven 4% in constant currency to an all time record of $7 95.
In total revenue per patron grew 8% or six 7% in constant currency to yet another all time record of $22 and 2016.
Total revenue per patron is now up approximately 43% compared to pre pandemic 2019.
It was driven in large part by approximately 56% increase in food and beverage revenue per patron.
Not only did we achieve the per patron revenue reports that I. Just noted we also grew our contribution margin per patron by five 2% or three 9% in constant currency to $14 48 since.
This is approximately 48% higher than pre pandemic 2019.
And you'll recall that we talked to that contribution margin as total revenue minus perform exhibition costs and food and beverage costs.
And this is then divided by total repayments to get to a contribution margin per patron.
This is a measure that is intended to provide an indication.
Incremental profit that we generate with each additional cost.
Based on all of the above.
It should come as no surprise that the total admissions revenue hit a Q2 post pandemic high of $762 $6 million.
And this is an important one total food and beverage revenue. She can all time AMC high of $500 million.
Our results highlight the significant operating leverage as Adam just mentioned that is inherent in our business with attendance up 25, 6%.
Our adjusted EBITDA margin in Q2, 2025 was almost 1000 basis points above last year's second quarter.
It's worth noting that thanks to operating efficiencies.
Despite consolidated Q2, 2025 attendance being some 35% below pre pandemic Q2 of 2019.
Which is the quarter that holds the record for the highest quarterly attainments and Amc's history. Thanks to the spectacularly successful Avengers endgame.
Despite a 35% lower attendance.
Consolidated contribution margin in Q2 2025.
Just 4% below Q2 of 2019, and our consolidated contribution margin per screen was in fact, 9% above Q2 of 2019.
This all illustrates our conviction that the industry does not move to fully recover to pre pandemic box office levels for us to achieve pre pandemic levels of adjusted EBITDA.
Up until now all focused on the consolidated results and record achievements.
Note that both our domestic and international theaters operated at record levels during the quarter and that food and beverage revenue per patron and food and beverage profit per patron have never been higher.
Both our domestic and our international theaters.
The second quarter results reflect the impact of our continued focus on creating an unrivaled guest experience two industry, leading innovations coupled with our enviable footprint in the most comprehensive and growing selection of premium large format offerings.
Another driver of our success is the actions that we've taken to optimize our footprint and enhance profitability by renegotiating leases closing underperforming locations and investing in high performing new theaters.
Since the beginning of 2020, we have now closed 204 theaters and opened 65, resulting in a net reduction of 139 locations or nearly 14% reduction.
Notably in just the last 18 months, we've closed 42 theaters and opened six.
The sub turn briefly to our balance sheet.
We ended the quarter with $423 $7 million of cash and cash equivalents, excluding an additional $51 million in restricted cash.
From a capex perspective for the full year 2025, we expect capex less landlord contributions to be in the range of $175 million to $225 million.
Our capital allocation priorities remain unchanged, one ensuring adequate liquidity to reducing our financial leverage buoy enhancing our existing circuit and four assuming high return growth orientated initiatives.
With the first two capital allocation priority squarely in mind as Adam noted, we have recently taken important steps to strengthen our financial position.
Collaborative and transformative transactions announced in July strengthen our financial position by one enhancing liquidity and addressing near term debt maturities are raising more than $240 million of new capital before fees and expenses that are primarily used to repay all.
Maturing in 2026.
<unk> lowered our financial leverage.
<unk> at least $143 million of exchangeable debt with the potential to echo times up to $337 million of such debt.
In total in the future.
These actions, which was supported by approximately 90% of our tender amended represent a substantial vote of confidence in amc's future and gives us a runway to execute on our strategy and capitalize on the industry recovery.
Since the beginning of 2022, we've now lowered the principal value of our debt and finance leases by more than $1 $1 billion, and we repaid $284 million of deferred leases.
All of this but total debt and deferred rent production of $142 billion in about three and a half yes.
Looking forward, we expect some seasonal box office weakness in the third quarter. When we will also be up against some tough prior year comparison.
However, we have high expectations for the fourth quarter, which may see the strongest quarterly box office and <unk> from.
From a free cash flow perspective.
Pleased with a strong Q2 results and while Q3 may be somewhat challenging we continue to anticipate being free cash flow positive for the nine month period, ending December 31, 25% assuming that the box office performance in line with our expectations.
In conclusion this quarter results reaffirm our conviction that our strategies are working.
C is extraordinarily well positioned.
Rise as the industry continues along the recovery glide path.
Now I'll hand, the webcast back over to Adam.
Thank you Sean.
I'd like to start a discussion of what comes next for AMC.
By first talking about some major pricing actions that we have recently taken.
Showing our pro consumer attitude on Tuesday July eight and Wednesday July nine months ago, we kicked off our new 50% off Tuesdays and Wednesdays discounted ticket pricing strategy here in the United States.
Bargain hunters can now find cheap admission ticket pricing and all of our show times on two days a week.
The vast majority of our U S theaters.
Discount Tuesdays Harvard law.
<unk> been a staple in our industry.
And it's built up Tuesdays to being Amcs highest non weekend attendance day of the week.
New this past month.
We changed our messaging.
Instead of it being referred to as discount Tuesdays, it's now called 50% off Tuesdays.
Our message that we expect will be a far stronger communication.
The potential bargain seeking moviegoers theyre merely saying discount Tuesdays, we've said for years, why well with our new messaging.
<unk> guests.
We can see and instantly can understand the magnitude of the.
The discount level that we're offering to them and of course, it's a sizeable loan.
More than that though.
We now have extended the same pricing philosophy to Wednesdays as well.
We're doing so with the hope that just has been the case for Tuesday's for years now, we can turn Wednesdays and the high Patrick's day for AMC.
United States currently by contrast, Wednesday heretofore has been our single lowest attendance day.
Of the week.
We're only four weeks of this important new pricing initiatives. So it's too early to declare victory yet, but we definitely have seen attendance spikes and.
And we are highly encouraged by the starting attendance numbers that we've seen so far as a result of the changes we've made in the Tuesday messaging and the extension of those good same discounts to Wednesdays at our U S theaters.
Two other really important thing to note about our 50% off Tuesdays and Wednesdays effort.
First.
This discount is only available to members of our AMC stubs loyalty program, but.
That includes any instantaneous new member sign ups.
So that gives consumers a powerful incentive to do.
Our loyalty program, which in turn allows us to track their package and market to them directly by communicating with them often.
And genius acquisition device for us to gain new loyalty program member sign ups.
Second.
And this may be something that many of you are unaware of.
Because we knew that we would be doing so much and so visibly so.
Bargains the bargain seekers.
Knowing that having a discount Tuesday, and Wednesday effort in the works also gave US the occurred a couple of months ago.
Broadly raised prices at our U S theaters.
On Thursdays Fridays, Saturdays Sundays and Mondays.
When most of our patronage takes place.
That effort has worked out very well and youll see that in our second quarter numbers. For example, Amc's average ticket price in the U S often meaningfully exceeds the prices realized.
But some of our most important competitors.
The yield management strategies differ at our European theaters.
But in looking back at the completed Q2 performance again, you will see that we've had considerable success in realizing more ticket revenue per guest.
That was the case in prior quarters for us.
It is the case still for so many others in our industry.
Next I'd like to turn to the efficacy.
Some of our most important marketing programs.
Our U S loyalty program AMC stubs.
As moving days movie database purchase activity collected on some 36 million U S households, that's around 90 million people in total.
About half of our total U S ticket buying guests are members of our AMC stubs program, playing both for their points and they received their other recognition benefits that come to them from being a stubs member.
I am particularly excited.
January 1st of this year, we launched a new VIP tier within the stubs program, a new level between the heretofore insider tier and the premier tier.
In just seven short months, we are already pushing close to a half a million.
Members in this newly created VIP tier, it's an incredible success story for AMC.
Then there is a list our monthly subscription program, which also is still a massive hit for AMC.
Launched in the middle of 2018.
A list members.
See an average of about 30 movies per year.
At an AMC theater.
And just recently.
Literally in the last few weeks.
This was a brilliantly profiled in the pages of both the Wall Street Journal and the Los Angeles Times.
The latter was described de risked.
Having coke light strong consumer appeal, especially with the younger Gen Z.
So good for AMC not the articles, but the fact of our the appeal of our program to Gen Z customers.
Because it portends, so well not only for our current patronage at AMC theaters, but our future patronage as those a listers stay with us.
For years and years to come.
Membership in the a list.
Roaring Hot.
Currently running up about 15% year over year.
Our simpler subscription program in Europe limitless.
Also of considerable consumer appeal, especially so in the United Kingdom.
Yeah.
Another marketing step forward for AMC Entertainment.
Is this one.
And looking back to the arrival of <unk> seen in 2021, and <unk> set of retail investors.
We knew that they were interested in the prospects of AMC financially.
It was obvious to us that way.
It should set out to convert their interest in our company.
In the securing their brand loyalty as movie going customers as well.
So.
We created the AMC Investor connect program.
Which.
Individually enrolled in there was no automatic enrollments no group enrollments people will sign up what are your time.
And incredibly AMC investor connect now have some one 7 million.
Enrolled members.
Another marketing success for AMC.
And finally.
There is our consumer advertising featuring Nicole Kidman.
It certainly has hit the zeitgeist both in the United States.
And across the United Kingdom and Europe.
All of us at AMC, and all Sidoti and our exit essentially crowd.
That Nicole Kidman continues to be such a central part.
Of our marketing activities.
Speaking of global celebrity.
The movie distribution effort, there was such a success for AMC, starting with Taylor Swift and the answer in 2023 continues to deliver for us.
Last year, we did ability I wish album release listening event with Interscope Records.
And just this past weekend.
AMC truthfully played what I describe as an Eminem a love letter.
To his legion of fans.
A documentary called stands.
This was an effort championed by Eminem himself.
And Youll see repeated mentioned and praise of this documentary repeatedly.
It is very prominent wrappers social media postings.
We continue to expect in the future that more interesting film products will.
It will come our way directly.
And finally, let me turn to the AMC go plan.
As you know, it's a comprehensive effort to continue positioning our company to fully sees the enormous potential of a resurgent any wide box office.
Here are just a few of the assays that we're taking right now under the auspices.
Of AMC go because AMC go focus as it is on offering our guests premium experiences a plenty.
We already started the work to double the number double the number of our already existing IMAX auditoriums that has been stepped up in their quality to the much improved IMAX with laser projection technology.
Sound systems.
We also add some additional IMAX screens as well to our current worldwide total of $2 20.
Paying close attention to the quality of the IMAX experience at AMC offers makes complete sense given that currently about half of all the IMAX screens in the United States. For example are located at an AMC theater.
Just as we are growing our IMAX footprint. We're also growing our new Dolby cinema footprint, we are going to be adding 23, new Dolby cinema screens in the U S. Just in 'twenty, five and 2026 alone.
Two our current worldwide number of 178.
And we will continue to add more Dolby cinemas in 2027 and beyond.
Over the next few years, we also hope to expand on.
Our house brands.
That is to say, we expect to more than triple.
The number of our house branded prime at AMC Peel up auditoriums, essentially eventually getting up to 100 or more prime at AMC is and that's in addition to the 82 house brand <unk> screens.
The Odeon already has internationally.
Looking past the pls per se.
In AMC and the Odeon exclusive.
We now already have open for business more than 120 X L branded extra large screens.
I did states and across the Atlantic.
<unk> was launched by us with our first between only a year and a half ago.
And yet by this year end, we should have more than 150 <unk> and.
And by next year end, leaving by December 2026, we do have close to 350.
XL auditoriums open and available for our guests.
Our XL branding initiative as a smart cost effective way for us for sure.
China's spotlight on some of the biggest and most impressive auditoriums in our circuit.
In the U S. All of giant screens that are at least 40 feet wide.
Featuring sharp and crisp <unk> laser projection.
And in all cases.
There'll be prominent branding, that's highly and evidenced across our theaters, our website and our mobile app.
And lets guests easily identify and select.
This upgraded experience.
But it's offered only.
By AMC and Odeon.
And finally, we continue to broadly equip our theaters with state of the art laser projection.
Right now more than two bits of our U S screens.
Now future laser projection.
Through brighter bolder and more energy efficient projection, so noticeably improves a dazzling images.
So onto our giant silver screens.
Yeah.
By year end this year more than 55% of our U S screens should've laser rejections installed.
Laser at AMC is the future.
That future is now.
These premium offerings are working well.
We're seeing strong guest satisfaction greater capacity utilization increased frequency of visits.
And loyalty engagement and increases to our realized prices as we deliver on our mission.
To offer more extreme premium experiences.
Any other movie theater circuit in the World.
AMC already is the home of premium experiences more than anyone else and we are going to continue to expand on that lead.
In so doing we offer to AMC Odeon guests.
The best movie going experience and agile.
And we believe that's a key to driving long term profitable growth.
Our business as a result.
As I close today's prepared remarks on the.
Call and webcast.
We recognize that there is still much work to be done on our path to a full recovery in.
The industry box office is still well below what it was pre pandemic.
And yet as Sean outlined because of the dramatic increase.
And our contribution per patron.
We actually can see EBITDA levels climb higher.
Than pre pandemic levels are much lower attendance and much much lower in July box office, we become remarkably efficient and running our business as a result of all the steps we've taken to improve our performance over the past five years.
But more than just that.
It is also effect.
We could not be more confident.
About the resurgence.
The industry box office.
Finally, a tailwind for AMC not the headwind that it's been since 2020.
With a strong second quarter results as our foundation this year.
Plus the bold actions that we're taking the hardest and momentum that resurgent box office, we believe that the future is exceedingly bright for AMC.
Remember my mantra.
That was proven both by our fourth quarter 2024 results.
Our second quarter 2025, earning success.
In Q4 of 24.
Our revenues were up by more than 80%.
And that caused our adjusted EBITDA.
Year over year to triple.
In Q2 of 25, our revenues were up by more than 35% and that caused our adjusted EBITDA to nearly quintupled.
Impressive operating leverage.
As our revenues grow at AMC.
The adjusted EBITDA of AMC can soar.
Sean with that lets move to questions from equity analysts and from our retail shareholders.
Thank you at this time, if you would like to ask a question. Please press star one now on your telephone keypad to withdraw yourself from the queue. You May press star two once again that is star one to enter the queue one moment, while we queue.
And once again that is star one we'll take our first question from Eric Wold of Texas.
With capital Securities. Your line is open.
Thanks.
Good afternoon everybody.
Couple of questions I guess.
First off on on pricing.
You talked a lot about pricing.
You, obviously mentioned the 50% off Wednesday pricing implemented.
A month ago to bringing the bargain hunters and then you also mentioned you can pick up.
<unk> raised prices.
Yeah, that'd be the gateway Tuesday.
You still have.
Surcharges on some of the blockbuster films kind of opening weekend, so I guess youre comfortable raising prices on ticket plant on the macro environment. You know, maybe you talk a little about about food and beverage as you know what are your thoughts there.
Once you get the consumers into the theaters are you taking a price on food and beverage are you more focused on.
Driving incidents engaging people to the counter and so instead of taking our price, whereas the buckets there and.
What is the best way that you found to drive into them.
Reason why what's worked the best there.
First of all Hello, Eric welcome back.
I guess, maybe your good luck bevier good luck charm, you're back in like as a group delivered a quarter and all quarters.
So first of all on pricing of tickets.
I believe.
That with better messaging on Tuesdays, calling at 50% authorizations of discount Tuesdays.
Explain the level of discount the magnitude of the discount.
Such that we are going to boost our Tuesday revenues by the change in messaging.
I also believe because we're extending that.
Tuesday pricing philosophy, which has worked so well for like more than a decade in the movie theater business.
Then we have the chance to do something with Wednesday's, we don't sell any tickets on Wednesday is now I think now I should say before July nine.
Tickets on Wednesday, so the prices we charge them was it doesn't really matter when you don't sell any.
And I am at.
Actually hopeful.
So we can start to see Wednesday admission revenues.
Rivaled Tuesday mission revenues turning what.
Is now the poorest day of the week for attendance.
And the strongest none weekend day of the week, where tenants that being Tuesday, as I said the early signs we can't declare victory in four weeks, but the early signs are quite encouraging that consumers are noticing.
It's Tuesday, Wednesday down, but Tuesday, Wednesday down as you as I said before it is you were repeated meant.
Meant that Thursday to Monday's, we took up.
And we.
We see no pushback on the prices we've collected for tickets.
We have the average price.
Two weekends ago.
Over 14 months in the United States, those kind of eye popping numbers, given where pricing has been.
In recent years and where he is even today and some of our competitors. The only thing that gives us confidence.
Having taken those pricing actions I wanted to be clear I comply with the law very carefully I am making no comments about what we will do with pricing going forward I'm always talking about actions that we've taken on pricing retroactively in the rearview mirror, which we can't talk about the former and we can talk about the ladder.
I would point out that our confidence in what the consumer is willing to pay to go to the movie.
In part comes from the success of our Pls auditoriums.
Because our POF auditoriums.
Often charge of six or $7 upcharge.
For IMAX or Dolby cinema screens, instead of a regular screen, our primes, sometimes get three to $6 more than our regular auditoriums.
We'll be three these screens usually gets three bucks three to four bucks more than a regular screens and these formats.
<unk> had been killing it.
If you look at when we put a movie on sale gets what ticket so first.
I saw a premium large format screens.
Rice's that are 30, 40, 50% higher than our regular auditoriums that suggests to me that the consumer has demonstrated clearly.
Then it's willing to pay up for the best and so therefore, the challenge for AMC is to deliver them the best and that's why.
We're putting laser projection into our regular.
<unk> as I said, that's where we.
We sit today, 43% of our screens in the U S. Now of laser projection by year end, 55% of our screens will have laser projection.
It's an increase of light levels on the screens by 50% to 100% makes a picture much brighter much sharper.
And that greatly improves the quality of experience that our guests get hence our confidence in having raised prices a couple of months ago now moving to your food and beverage question.
The answer is we're doing all of that.
We're focusing on.
A variety of things number one menu variety so that our overall menu is not only to our dine in theatres, but also our regular theater concession stands are more interesting and more appealing to our guests second.
We've added a whole are in because we've added so much variety to the experience.
We've been successful in selling more units.
Per transaction to our guest so our guests who used to buy one product now obliged to guests use the buy to now by three that's used by three four.
We've also had dramatic success in getting more people to stop at the concession stand and actually buy from us.
It is a startling statistic.
How many people can go to a movie here.
Just pass their historic 12 or.
More recently 13 or $14 ticket price to get in.
For the average screen not for Pls ring more like 18 or 19 for appeal upstream.
We were able to pass the 12 Bucks again in the door.
And that's it and then they go to their feet and they don't buy a thing.
The number of people just at AMC in a year, who go into our theaters and buy nothing from us at all because that's what sand is more than the entire attendance.
Any major league baseball team.
And the entire another rig or the entire National League. It is amazing.
And yet one of them.
Of the things that's caused real success for us ever since we reopened from call it five years ago.
As more and more people are no longer bypass any concession counter theyre stopping at the concession counter and they're taking advantage of all the things that we now offer.
And you know I mean, there's a lot of creativity in that.
Movie themed drinks, which we didn't do many years ago, we now are moving to.
<unk> drinks just about every weekend of the year.
And they are very profitable for us.
But it's also true.
Having four kinds of popcorn flavors instead of one.
140 drink flavor choices coming out of a freestyle machine instead of being some movie theaters that hazards.
<unk> thousand where they can dispense eight or 10 or 12 different flavors for the guests I could go on and on about the variety of things that we're offering our guests.
But that's probably more people established us as a buyer is causing more purchased items per guest and of course, yes, we have taken some pricing action level as well.
Got it.
One of them as well.
Well Marty.
Finally, he signed the amended agreement with National Cinema media.
Back to extend the.
Average items prior to the Showtime that started at the start of July.
It's out recently that you may now be cutting that back already.
Any comments there, but that is true you are cutting it back.
What's leading to that decision to do so so so quickly after theyre sending it.
Well first of all so.
The reports are you hearing are accurate and inaccurate at the same time and you sort of get you got half of it but not all of it right. So.
First of all.
There were two rationales.
For why we did the deal we did with natural set of media.
And it's something we resisted for many years, because we don't like lengthening our pre show.
And we don't particularly love.
Dell using our customers.
As for third party product.
But the first rationale.
As our two largest competitors Regal and cinemark.
I've been doing this for like six or seven years.
And we did not.
And we noticed that their market share was not being hurt by these actions.
We were foregoing literally tens of millions of dollars a year.
And we made this decision in the first quarter, which is pretty bleak here pretty bleak quarter for revenues and profitability and we really floating with irresponsible.
Pass up the.
The money is that our competitors were taken.
But theres a second interesting reason.
When we bought Carmike in 2016, we inherited the carmike contract with Mtm's biggest competitor called screen vision.
And screen vision is in place and a significant number of our AMC theaters.
Under the terms of the screen vision contract the screen vision pre show plane until five minutes after Showtime.
Whereas the MCM contract.
Called for.
The pre show program.
Where to stop at Showtime, so already within the AMC circuit, we had of disharmony, whereas some of our theaters depreciable continue to depreciate with ads continue for five minutes post Showtime it'll be LTM periods or not.
But this is the first change with the NCI contract.
As we allowed MCM to have the same five minutes of extra pre show.
The screen vision has had since we bought carmike in 2016.
We saw no pushback at our screen vision equipped theaters.
For the length of our pre show.
The only other change is this one minute of platinum spot.
That is going before I believe the second to last trailer prior to the start of the movie. So those are what we added in with MCM and as I said, it's worth tens of millions of dollars a year for AMC in bottom line EBITDA growth notes the press reports.
We actually had to cut some things back.
We're not cutting back the agreement that we put in place with MCM that is contractual.
Contractual for many years to come.
But what we are going to try to streamline a bit.
We run about.
Four minutes or so.
Of AMC marketing material.
Fluffy silencing Goldman and turn off your cell phones and throat.
Things like that.
As part of our whole pretty short experience.
We think we can take.
It looks like 45 minutes in length, we think we can easily take two to three minutes out of that.
Another thing that we have to think hard about.
As we carefully surveyed the number of trailers that we show before the feature film and the number of trailers and our largest competitor show and it looks to us like we're showing one extra trailer more than our principal competitors, which adds another two and a half minutes or so to the length of our pre show Pat.
In total.
And we knew that when we did the MCM deal we might have to make a trade off that we're going to add six minutes of of angry Orchard and Sam time, we might have to reduce a trailer and might have to add it down so our marketing fluffier stuff.
In advance of the feature film and I mean, I'll give you a perfect example, right now.
IMAX and Dolby is varied.
Very successful format for us.
And we put a one minute promotional teaser.
About IMAX or Dolby in front of every feature film.
We think we can cut back to 45 seconds it'll be RV adjusted effective judging impactful will calibrate IMAX story, what celebrate Dolby cinema story.
But its 15 seconds say 15 seconds here 15 seconds. There. It adds up we think we can shave 45 minutes out of it.
So its not that theres been a change of heart.
We always knew that when we did the MCM deal.
We would probably have to shorten.
At the same time, we relate to them so that those two changes to <unk>.
Vectors.
Offsetting each other and balance each other out.
We know that consumers some consumers love the trailer packages, because they get to see what's coming.
Our studio partners about withdrawal of packages. It is the best form of advertising.
I don't find anywhere, it's putting their movie product and right in front of moviegoers faces.
So.
But we also know that some of our other consumers.
I think the packages go on too long.
Trying to find a happy medium and we're also doing a better job of telling people when the movies will start.
So that for those people, who don't want to get there all the time.
They can come a little later or if theyre anxious they don't know you're walking in the door at the single.
Showtime like Theyre going to Miss them early so anyway. That's it that's the reactions of the whole MCM and I'm pretty sure story.
Got it thanks, guys I appreciate it.
Thank you we'll take our next question from Chad Beynon Macquarie. Please go ahead.
Hi, Good afternoon, guys. Thanks for taking my question nice quarter.
I wanted to ask just a.
The overall.
Portfolio Adam.
And Sean you went through the.
The net closures over the past couple of years I think this is one of the first quarters were.
There was almost zero net closure sequentially.
So with that in mind can you just talk about.
Given the profit outlook and a more positive view on the industry or are we at a point, where we might start seeing.
Net adds going forward.
Obviously understanding that leases come up on an annual basis, but just kind of thinking about the portfolio.
Cash flow per screen.
It could start to be a floor in terms of.
The number of units in your portfolio. Thank you.
Thanks, Thanks for the question Chad.
So.
There was one really important statistic, where Sean left out when he bragged about 205 closures and 65 openings.
Is it two or $5 65 to three two is something we feel four or something.
200 and change in 65 openings.
What he didn't mention is that the 65 openings.
Our olive grossing.
240 ish closures.
So we're focusing on the wrong statistic.
Focusing just on the number of theaters that we close what's more important.
Is the profitability of the theaters that were opening versus the profitability of the theaters that were closing and in the case of the theaters that we closed.
Most of them were losing money when you look at the theaters that were opening.
We've opened hit after hit after hit.
There are theaters that we've opened in like in the last few years that are amongst our highest grossing theaters in the entire United States.
Would come to mind.
The Grove in Los Angeles Americana at brand in Los Angeles.
Porter Ranch also in Los Angeles to Panga 12 also in Los Angeles.
Hi.
The growth in America are two of our 10 highest grossing theatres weekend and week out.
Porter Ranch in Japan.
The five highest grossing theaters or the top 15 highest grossing theaters out of 540 weekend and week out.
As you take the collective of at all.
The theatres that were opening.
Shine.
And their shiny and they're new in great locations today Theyre far outside of the 25 year old theaters that are somewhat moribund that might've been in bad locations. Today. They were good locations 29 years ago, when they open but those locations aren't as compelling today as they once might've been at the top.
One of the 20 <unk> century.
So again.
About 10% of our leases leases come up for renewal every year.
So figure.
Hundreds of theaters comes up for renewal.
No I wouldn't be shocked if we closed 10 of them.
So I don't know that we're in at an absolute floor.
But what you can assume is.
Is that when we close a theater.
With almost 100% reliability, we're not closing a problem with it and we've made a lot of money. We're closing a theater that was a drag on our EBITDA that was lowering the consult EBITDA the company. So as it closes the EBITDA the company rises.
Hmm.
When we get to a point, where our where we still have that.
That many.
Excuse the expression picking theaters left in our system, having closed 200 of them.
But we have a few.
So maybe maybe we close five to 15, a year for three years, but.
We will we are continuing on in the hunt.
Sure.
New theaters in a locations, we're just opening in Chicago.
Theater that we believe will be one of the highest grossing theaters in Chicago.
And again the theaters that were opening.
Our growing more in the theaters were closing and theyre producing more EBITDA than the theaters that were closing.
At some point.
I think we will move to a net add of theaters rather than a net decline of theaters.
Don't know that we're there yet exactly except <unk>.
One key circumstance.
And then as we continue to be offered.
Folios of theaters.
On an M&A basis, sometimes at very attractive prices like really attractive prices like three or four times EBITDA kind of at attractive prices.
And so I do think if you look forward over the next.
36 months maybe.
Youll see that some of our biggest additions of theaters, which will far outstrip. Some of the closures may come to us and interesting acquisition opportunities, where we can bring.
<unk> is in good condition into our fleet.
Very attractive M&A expenditures.
Okay. Thanks for all that Adam and then lastly quickly Sean just on the big beautiful build benefits too.
Capex.
General and companies.
Can you just talk about as you see it now maybe what some of the cash benefits.
Could be either from a cash tax standpoint, or a cash yield standpoint in.
In future years. Thank you.
Sure. Thanks.
I'll, just say as a result of that.
We get two key benefits one is the depreciation deduction and the other is the interest deduction based on EBITDA as opposed to EBIT.
So that is a benefit for us, but bear in mind that we have Nols.
That will run through probably through 2026 or so the cash benefits.
The only be in.
Future U S 27, 28 and 24th.
So it's certainly it's been up.
Deductions, but it's not a short term.
Cash benefit that's more of a longer term cash benefit for us.
Great. Thank you Bob I appreciate it.
No.
Thank you we have no further questions at this time I'd be happy to return the call to Adam Aron.
Thank you earlier, we're going to now take a couple of questions.
From the from our retail investors.
Just briefly the first question is just asking if we have any reaction to Sky Dawn says acquisition of Paramount that's not just US yes, we sure do have a comment about the Paramount acquisition from Sky. There is first of all.
We've had a very good relationship.
Paramount across many generations of his leadership.
Especially like to thank Brian Robbins, and his executive team.
<unk> been superb partners for AMC over the course of the last many years.
At the same time, though we are excited.
Buy side answers acquisition of Paramount.
Cause.
Our amount has been cash hampered in recent years, which has caused them to greenlight fewer movies than they might have liked to.
It appears to us at Sky the answers cash rich.
It would be our expectation that sky the answer will be releasing more movies.
Coming out of Paramount.
Paramount has been releasing in recent years.
You'll also recall.
David Elison.
As you know a rookie and really business.
He has been a prime force and some of the most important movies that have come out in recent years.
Especially comes to my mind is top gun Maverick.
Which in my mind is the single movie that you can point to since Covid hit in 2020 that turns the movie theater industry around.
It set us back on a course, where student with its $1 $5 billion worldwide gross.
And finally reminded various studio chiefs.
The future was not only in their streaming services, but also in their theatrical releases.
And that sometimes the most successful movies on screening services.
Were those movies that had a great theatrical release.
In case.
Most of the highest movie watched on Paramount plus top gun Maverick why.
Because it had a spectacular one 5 billion.
The African release worldwide.
So the fact that.
David and Sky dance wont make more movies.
And the fact that they have experienced and making really good movies.
And then you can add in the fact that the new President of Scott answered is gonna be Jeff shell, they're usually the chairman of Universal Studios.
And we've had a superb relationship with Jeff shell over the past decade.
And I've talked to Jeff I know that he is excited to be back at the helm of a major studio well he's got more in the studio of course, you've got the whole enchilada, but his influence Oh.
What happens at Paramount will be profound and we think it's going to be very good for theatrical exhibition.
Terrific.
Comments about AMC distribution. There are we just made the Eminem announcements last weekend anything you'd like to point out on AMC distribution and future opportunities that sure.
Yeah, we obviously two years ago.
We had these massive successfully with Taylor Swift and beyond say and we've had lots of conversations with lots and lots of world class artist.
Then.
Somebody else got very close, but then didn't materialize other than happened. We did was build a iris album release a year ago.
We did this Eminem documentary just this weekend.
Apparently a movie.
Beloved by his fans it got some spectacular scores on Rotten Tomatoes or your.
The.
We're in several conversations right now with more world class talent about more projects coming out.
As soon as 2026.
It's also given us.
But again the courage.
Look more broadly at how movies into shutting it in and we.
We had success in distributing some concert movies, maybe there are some non concert movies, we could bring.
Bring into theaters as well we'll see.
The vast majority of our product is always going to come from our studio partners of course.
But I think there's opportunistic proffered a profit opportunity.
There is plenty of excess capacity in the movie theater industry. It is I'm an old airline Guy if an airline has fewer than 75% of it seems films and airline Margaret Slash. These risks.
In the movie theater, and see where it is.
We're a church for Easter Sunday.
We only sell less than 20% of our seats.
In the course of any given year.
There's tons of capacity.
We certainly have the screens to show more product there's more productivity.
Terrific.
Adam Finally, a question on AI and the impact on our business and its benefits.
Yes.
I wonder if you'd like to comment on that.
So.
Every company in America is talking about AI every board of directors of America talking about AI.
No difference so we're talking about AI.
And the AI Revolution is happening very quickly.
I know that I've completed personally are completely abandon Google and exchange volumes at GBT.
Sure.
And you.
You just see it in every aspect of our company there is opportunity to use it we're already using it and software development and software optimization and so on we're testing we're using an image creation for marketing, we're using it for the automation and simplification of paths here at our corporate office, we process art.
Sounds payable using AI.
We've got teams in our theatres looking at AI and how it can be used to address operational issues at our theaters.
We're using AI already in demand planning for inventory management.
We have just scratched the surface on it.
Do think going forward there'll be an opportunity for us to take care or take advantage of the powerful AI technology to assist with our pricing with our film scheduling with our customer service programs and our consumer.
Sponsored programs and there is more and more which might be the most exciting of all week.
Actually been talking.
And are in conversations right now about making small investments.
Some.
Technology enabled companies.
Whose prospects.
They are related to the movie industry related to entertainment and its prospects are incredibly bright and we'd like to benefit fully from the AI Revolution.
Nearly as already at hand.
So I think that's all the questions that we have at this point, great alright, well. Thank you everybody for joining us today and for staying with us with.
The second quarter of 2025 was <unk>.
One.
Made us very excited here in Leawood, Kansas.
We delivered big numbers, almost equate toppling of our EBITDA. We were ahead of the street on just about every expectations you'll add for us.
And we think this is just the beginning of something that's going to happen.
After the quarter.
Starting in the fourth quarter of 2025 remember what I said.
In the fourth quarter 24 revenues were up 18% EBITDA tripled.
In the second quarter 2025 revenue was up 35% and change our EBITDA almost quintupled.
There's enormous operating leverage in this business.
We can finally have the wind at our backs with rising industry revenues.
<unk> for the EBITDA.
AMC can generate as a result, thank you for joining US today, we will talk in 90 days.
Yeah.
This does conclude the AMC Entertainment Holdings incorporated second quarter earnings webcast. You may now disconnect and everyone have a great day.
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