U.S. movie theatre chain AMC Entertainment (AMC) has reported third-quarter financial results that beat Wall Street forecasts.
The company, which has struggled financially since the pandemic struck in 2020, posted an earnings per share loss of -$0.04, which was better than a loss of -$0.09 expected among analysts.
Revenue in the July through September period totaled $1.35 billion U.S., which was better than the $1.33 billion U.S. estimate on Wall Street. Sales were down 4% from a year earlier.
AMC reported a decline in attendance at its movie theatres due to fewer blockbuster films being released this past summer.
Attendance at AMC’s movie theaters dropped 11.5% to 65,087 from 73,576 in the same quarter of 2023.
Management said they are dealing with lingering impacts from last year’s strike by Hollywood actors and writers, which shutdown film production for several months and delayed the release of many blockbuster films.
Consumers have also been pulling back their discretionary spending on entertainment and moviegoing in recent months due to economic pressures.
However, AMC’s management team said on an earnings call with analysts and media that they expect the industry-wide box office to rise over the next two years.
AMC’s stock has declined 25% this year to trade at $4.58 U.S.