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The AMC chain lost 918 million in 2022 and celebrates four consecutive years in ‘red numbers’

The chain of movie theaters studies formulas to raise the price of the most demanded seats

The AMC Entertainment Holdings group, the largest cinema chain in the world and owner of Cinesa, registered losses of 973.6 million dollars (918 million euros) in the whole of the year 2022, which represents a reduction of 23.2 percent. percent compared to the ‘red numbers’ of 1,269 million dollars (1,197 million euros) in 2021, but it represents the fourth consecutive year in losses for the multinational.

However, the chain managed to improve its income by 54.7 percent in the last year, up to 3,911.4 million dollars (3,690 million euros), including an increase of 57.9 percent in attendance collection, up to 2,201.4 million dollars (2,077 million euros) and 53.2 percent in income from the sale of food and beverages, up to 1,313.7 million dollars (1,239 million euros).

Between October and December, AMC registered losses of 287.7 million dollars (271 million euros), compared to the ‘red numbers’ of 134.4 million dollars (127 million euros) in the fourth quarter of 2021, while the chain’s income totaled 990.9 million dollars (935 million euros), 15.4 percent less.

“AMC’s 2022 results represented our best year since before the 2019 pandemic,” said AMC Chairman and CEO Adam Aron, noting 54 percent revenue growth in the year and improvement in over of 338 million dollars (319 million euros) of adjusted gross operating profit (Ebitda) compared to 2021.

He also noted that Q4 2022 revenue per user of $19.98 exceeded pre-pandemic levels, thanks to higher ticket prices and customer spending at ticket booths. “high-margin” food and drink.

In this sense, he expressed his confidence that the recovery will continue at a good pace in 2023, when Hollywood is expected to release approximately 75 percent more important films than in 2022, which invites the chain to think that it will continue to register a considerable recovery.

“But we cannot stress enough how crucial it is for AMC to remain viable, we must remain agile and not only in the day-to-day running of the business, but also in our continued increase in cash and decrease in the debt load in AMC Entertainment,” he added.

NEW PRICE SYSTEM IN TEST.

On the other hand, during a conference with analysts, Aron announced that AMC will carry out tests of the ‘Sightline’ system, for which the company charges a premium for the most demanded seats, in some cinemas in New York, Chicago and Kansas City.

In this sense, the executive explained that the test is being carried out with a view to a possible implementation at the national level later in 2023.

“We are charging a slight premium for the most popular seats in the auditorium, but discounting the prices for the less popular seats closer to the screen,” he said, referring to what happens at other shows like theatre, concerts and sporting events. .

In this way, unlike what had been happening in the sector, where if you wanted to raise the price, you had to increase it for all locations.

“One of the many benefits of Sightline is that if we feel the need to raise prices, we may only do so on the most popular seats and actually hold the line and not raise the prices of other seats in the auditorium.” he added.

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