(Reuters) – AMC Entertainment Holdings Inc said the launch of COVID-19 vaccines and the launch of major movies, including Walt Disney Co’s “Black Widow,” would boost sales this year, sending the company’s shares up a notch. 9%.
AMC shares have more than doubled in the past 12 months, with the recent surge coming as a result of it being one of so-called “stonks,” a term used to describe stocks with complicated outlooks that are popular with retail traders in online forums. .
The health crisis devastated the film industry last year, forcing AMC and its rivals to raise new capital to stay afloat, but analysts polled by Refinitiv expect AMC’s revenue to double this year.
“Despite all the talk about the steps we have taken at AMC to strengthen our position, the real salvation for our company will be vaccination,” Chief Executive Officer Adam Aron told analysts.
The theater chain’s move to implement COVID-19 security protocols encouraged more than eight million customers to return to their theaters during the fourth quarter, AMC said.
AMC added that several major releases that were delayed would hit AMC’s big screens in May onwards, and movies such as “Godzilla vs. Kong”, “Top Gun: Maverick”, “Black Widow” and “F9” are expected to rise. sales in the coming months. .
The chain of cinemas in recent weeks reopened many cinemas, with about 90% of its theaters in the US open as of Friday. He expects his European cinemas to reopen in time for major releases.
“Our focus is no longer on survival, but now it has been on directing a wave of movies and on the recovery of AMC,” said Aron.
AMC’s fourth-quarter revenue fell 88.8% to $ 162.5 million, beating estimates of $ 142.4 million, according to Refinitiv IBES. Excluding items, AMC lost $ 3.15 per share, less than expected for a loss of $ 3.16 per share.
Reporting by Eva Mathews and Praveen Paramasivam in Bengaluru; Editing by Shounak Dasgupta and Amy Caren Daniel