AMC Entertainment Reports $202.1 Million Net Loss and Revenue Decline in Q1 2025

AMC Entertainment Holdings, Inc. reported a net loss of $202.1 million for the three months ended March 31, 2025, compared to a net loss of $163.5 million for the same period in 2024. The company's total revenues decreased by 9.3% to $862.5 million, down from $951.4 million in the prior year. This decline was primarily driven by a 10.7% drop in admissions revenue, which fell to $473.5 million, and an 11.8% decrease in food and beverage revenue, which totaled $283.4 million. The decrease in attendance, which fell to 41.9 million patrons from 46.6 million, was attributed to a less favorable film lineup compared to the previous year.

Operating costs and expenses also saw a reduction, decreasing by 4.8% to $1.008 billion, down from $1.060 billion in the prior year. Film exhibition costs decreased by 14.4% to $204.8 million, reflecting lower admissions revenues and more favorable film rental terms. However, the company still reported an operating loss of $145.9 million, compared to an operating loss of $108.4 million in the same quarter of 2024. The increase in operating loss was influenced by higher interest expenses, which rose to $119.1 million from $101.2 million, largely due to increased borrowing costs.

In terms of strategic developments, AMC has been actively managing its debt and liquidity. The company executed a cash for debt transaction during the quarter, repurchasing $1.3 million of its Senior Subordinated Notes due 2025. Additionally, AMC raised $169.6 million through equity issuances, which contributed to a net cash provided by financing activities of $158 million for the quarter. As of March 31, 2025, AMC had cash and cash equivalents of $378.7 million, down from $632.3 million at the end of 2024.

Operationally, AMC continues to expand its offerings, having entered into agreements to open 40 4DX and 25 SCREENX locations worldwide, with the majority planned for U.S. markets. The company also introduced a new tier in its loyalty program, AMC Stubs Premiere GO!, which aims to enhance customer engagement. As of March 31, 2025, AMC reported approximately 36 million member households enrolled in its various loyalty programs, which accounted for about 50.5% of attendance in U.S. markets.

Looking ahead, AMC's management expressed concerns regarding the sustainability of its current cash burn rates and the need for increased revenues to achieve long-term profitability. The company noted that North American box office grosses were down approximately 40% compared to pre-COVID-19 levels, indicating significant challenges in the current market environment. AMC's ability to generate additional liquidity and improve attendance levels will be critical in the coming months as it navigates these challenges.