AMC posts surprise profit as summer blockbusters boost US box office

By Anzar Mehraj

July 20 (Reuters) - AMC ‌Entertainment turned ​in a ​surprise adjusted quarterly profit, the latest sign that U.S. cinema chains are rebounding thanks to a strong summer release slate that ‌included blockbusters "The Super Mario Galaxy Movie" and "Obsession".

The largest U.S. theater ⁠chain also posted record revenue in the second quarter, and said a $124 million opening weekend ‌at the domestic box office ‌for Christopher Nolan's "The Odyssey" bodes well for an industry still clawing back to pre-pandemic attendance levels.

Its shares rose 18% in morning trading.

"This is the ​biggest box office quarter in seven years and the fifth-biggest quarter ever," CEO Adam Aron said of the April-June period.

"We believe that movie theaters ⁠will enjoy, in the full twelve-months of 2026, their strongest yet post-pandemic year, at both the domestic ​and the global box office."

Backing the view is a packed release slate, with "Spider-Man: Brand New Day" hitting cinemas at the ​end of July and Warner Bros Discovery's "Dune: Part ‌Three" and Disney-owned Marvel's tentpole "Avengers: Doomsday" landing in December.

Major studios including Disney and Comcast's Universal have also committed to ⁠exclusive theatrical windows for their biggest films, a trend operators have said was driving footfall.

For the second quarter, AMC posted revenue of $1.60 billion. Analysts on average estimated $1.47 billion, ⁠according to data compiled by LSEG. Adjusted profit per share was 14 cents, compared with ​expectations for a loss of 6 cents.

Six different films delivered domestic opening weekend grosses exceeding $75 million, and attendance at AMC's U.S. and international markets rose 12% and about 18%, ‌respectively.

Still, some analysts question whether the recovery can hold as cinemas face a potentially weaker release slate next year.

"For ‌six years now, moviegoing has struggled to maintain pre-COVID activity. Strong quarters, like this ⁠one, will happen now and ‌again. But the industry's ​struggles will remain," said Ross Benes, senior analyst for TV and streaming at eMarketer.

(Reporting by Anzar Mehraj in Bengaluru; Editing by ‌Joyjeet Das)

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