Bitcoin News

AMC CEO touts ‘transformational’ quarter, will offer movie tickets for Bitcoin

Adam Aron, chairman of AMC Entertainment and CEO, stated that the movie-chain-turned meme-stock experienced a ‘transformational” second quarter after it raised $1.25 billion. This increased its total liquidity to more than $2 billion.

AMC’s 593 theatres in the United States and 335 international locations were fully reopened as of June 30. With more than 22,000,000 people returning to see the blockbuster films, AMC has broken pandemic-era attendance records.

The net loss for the quarter was $344 million or 71c per share. This compares to a loss in 2005 of $561.2million or $5.38 per shares. The quarter’s total revenue was 444.7 million, an increase of $18.9million a year earlier.

AMC Investor Connect is a new program that provides updates to shareholders and offers special deals such as advanced screenings of movies and concessions.

Aron announced a number of new measures to allow AMC’s second quarter earnings conference to deliver better than expected results.

  • There are up to 10 new leases available, eight of which were previously owned by ArcLight Pacific. AMC has signed a lease or a letter to intent for three theatre locations in Los Angeles, Chicago and Atlanta. AMC is also in advance negotiations for four additional locations.
  • In 2021, there will be a dozen new theaters opening in the U.S., Europe, and the Middle East.
  • Alternative programming will be introduced in theaters such as two concerts featuring Chance the Rapper or Halsey. These movies will start showings in August. AMC hopes to have a meaningful dialogue with professional and college sports leagues.
  • By the end of 2018, Bitcoin will be accepted for online movie ticket and concession purchases at theatre locations across the country. Apple Pay and Google Pay will also be available for online purchases.
  • Warner Brothers has entered into a new formal agreement for a 45-day theatrical window on their film slate, prior to at-home release.

Aron declined to answer further questions about AMC’s potential partnership with GameStop, a fellow meme stock and giant video game company.

Aron stated that he would recommend a new policy for AMC’s board. It will require him to own and grant shares equal to eight years or $12 million of his salary. AMC’s chief finance officer will have a number owned and granted shares equaling six years of his salary, while AMC’s executive vice-presidents and senior vice-presidents will each hold owned shares and grants equal to four years and two years, respectively.

Aron stated, “At the same moment as I emphasize share ownership, I’d also like to remind you, that I haven’t sold one share AMC stock over the five years I’ve been managing this company, even though it accounts for more than three-fifths my annual compensation.”

Aron also stated that he intends to diversify his portfolio and sell some of his AMC stock as part of a 10B51 plan.

The company projects positive cash flow for the fourth quarter if domestic box office revenues exceed $5.2 billion.

After-hours trading saw AMC shares surge by 4% following the earnings announcements.

Aron will be appearing on FOX Business’s ‘Making Money With Charles Payne’ on Tuesday, February 2, at 2 PM EDT.