As summer blockbusters draw audiences back to theaters, a detailed look at consumer transaction data reveals a compelling resurgence for AMC Entertainment Holdings (NYSE: AMC). In June 2022, AMC’s sales in the U.S. tripled compared to the same month the previous year, signaling a robust recovery. This analysis delves into these figures, comparing AMC’s current performance against pre-pandemic levels and examining the factors driving this impressive growth. Furthermore, we will explore how these trends position NYSE: AMC in the evolving entertainment landscape.
Tripling Sales: AMC’s June 2022 Performance vs. Previous Years
AMC Entertainment witnessed a remarkable surge in sales during June 2022. Sales figures for June 2022 surpassed those of June for the preceding five years, with a striking 200 percent increase year-over-year. This dramatic growth underscores a significant rebound in consumer demand for moviegoing experiences at AMC Theatres.
Comparing June 2022 sales to pre-pandemic performance further highlights AMC’s recovery trajectory. Sales in June 2022 were 11 percent higher than in June 2019, 15 percent greater than in June 2018, and a substantial 74 percent above June 2017. It’s crucial to note the anomaly of June 2020, during which AMC theaters remained temporarily closed due to the COVID-19 pandemic, impacting year-over-year comparisons. AMC initiated a phased reopening of its U.S. locations starting in August 2020, with major metropolitan areas like New York and Los Angeles gradually reopening in March 2021.
Sales per Customer Rise Despite Customer Count Dip
While AMC Entertainment has experienced a strong sales rebound, customer traffic trends present a nuanced picture. Customer counts in June 2022 were 180 percent higher compared to the depressed figures of June 2021. However, when juxtaposed with pre-pandemic benchmarks, customer counts in June 2022 were lower than in June 2018 and 2019, registering declines of 9 percent and 12 percent, respectively.
An interesting trend emerges in the average sales per customer at AMC. Notably, this metric has generally increased throughout the COVID-19 pandemic period. In June 2022, the average monthly spending per customer reached approximately $49, marking a 7 percent increase year-over-year and a significant 21 percent increase compared to June 2019. The spring and summer of 2020 saw a dip in monthly sales per customer due to theater closures, where transactions likely stemmed from non-ticket purchases such as gift cards or video on demand services. Upon initial reopenings in August and September 2020, AMC implemented promotional discounts, including a 15-cent ticket offer on opening day and $5 tickets for select classic movies. These promotions may have temporarily lowered the average monthly sales per customer in those months compared to subsequent periods. In an effort to attract moviegoers, AMC announced the reinstatement of its popular $5 Tuesday pricing program in July 2022, valid through October.
Diversifying Revenue Streams: AMC’s New Initiatives
AMC Entertainment has proactively diversified its business model by introducing new revenue streams beyond traditional movie ticket sales. These initiatives include the launch of a video on demand service, offering consumers at-home movie viewing options. Additionally, AMC has ventured into private theater rentals, catering to groups seeking a more exclusive cinema experience. Exploring alternative concession sales channels, AMC is considering opening popcorn kiosks in retail locations and has partnered with Uber Eats in select areas for movie snack delivery. In the digital realm, AMC has embraced NFTs, launching them for shareholders and in conjunction with certain movie releases. Furthermore, the company is reportedly exploring the potential of creating its own cryptocurrency, signaling a forward-thinking approach to financial innovation.
Conclusion
The data from June 2022 paints a picture of strong recovery for AMC Entertainment Holdings (NYSE: AMC). While customer counts are still slightly below pre-pandemic levels, the significant increase in sales, driven by higher per-customer spending, indicates a positive financial trajectory. AMC’s proactive diversification into new business areas like on-demand streaming, private rentals, and innovative concession strategies, along with ventures into NFTs and potential cryptocurrency, suggests a multifaceted approach to long-term growth and resilience in a dynamic entertainment market. The comparison of NYSE: AMC performance in June 2022 against previous periods demonstrates a notable rebound and positions the company to capitalize on the resurgence of moviegoing.
