AMC Entertainment Holdings Inc (NYSE:AMC) on Tuesday reached an agreement with National CineMedia Inc to run more advertising in its theaters.
From July 1, AMC theater screens will feature a "platinum spot" before the start of a film, Bloomberg reported on Thursday. The theater chain will get a cut of the ad sales.
National CineMedia owns and operates an ad network in major theater chains, including AMC, Cinemark Holdings Inc (NYSE:CNK), and Regal Cinemas.
Also Read: AMC Stock Rises As Theater Chain Launches 50% Off Wednesdays
AMC reported first-quarter revenue of $862.5 million, down 9.3% year-over-year. The total beat a Street consensus estimate of $837.1 million.
The company reported an adjusted loss of 58 cents per share for the quarter, beating a Street consensus estimate of 59 cents per share.
Total attendance was 41.9 million in the first quarter, down 10.1%. U.S. attendance was 26.9 million, down 11.8%, while international attendance of 15.0 million was down 7.1%.
AMC's CEO, Adam Aron, remains upbeat and has a strong outlook for the rest of this year, pointing to a packed slate of major studio releases for the summer and beyond.
AMC expects the 2025 domestic box office to land at the upper end of its prior forecast, potentially $500 million to $1 billion higher than last year.
AMC announced that the Memorial Day holiday weekend spanning Thursday through Monday was the company's third-biggest revenue total for a five-day period in over 10 years, driven by robust openings from "Lilo & Stitch," as well as "Mission: Impossible -- The Final Reckoning."
More than seven million people attended AMC locations in the U.S. and ODEON Cinemas internationally, which helped the company record its highest attendance on Fridays, Saturdays, and Sundays of the year in the U.S.
AMC stock declined 34% in the last 12 months as it grappled with weak box office performance since the COVID-19 pandemic.
Price Action: AMC stock is up 1.76% at $3.46 at last check Thursday.
Read Next:
- Imax Wins Analyst Praise On Strong Film Slate, But China Market Volatility Raises Concerns
Photo via Shutterstock
