AMC Entertainment shares tumbled on Friday to near their lowest level for October and below the $36 threshold. The stock managed to close above its worst level of the day but still finished lower by nearly 7%. The company’s third-quarter earnings are right around the corner and CEO Adam Aron has innovation on his mind.
While the stock took it on the chin on Friday, it might not stay in the doldrums for long. AMC’s weekend ticket sales have given investors something to cheer of late as consumers head back to the movies. According to AMC CEO Adam Aron, the first three weeks of October were the best for “domestic industry box office” ticket sales since the pandemic reared its head.
Encouraging box office news keeps rolling in! We need to sell more tickets still, but Oct 1 – 21 had the biggest 21-day “domestic industry box office” since the pandemic closed theatres early in 2020. Yo, prophets of doom for the future of cinemas, a positive sign #CHOKEonTHAT pic.twitter.com/mYZJlAcAgu
— Adam Aron (@CEOAdam) October 22, 2021
AMC Q3 Earnings Preview
AMC is expected to report its third-quarter earnings results in the coming days. In Q2, management revealed that the movie chain was experiencing “strength in both average ticket price and food and beverage per patron as we move through the third quarter.” The company finished Q2 with more than $2 billion in liquidity, comprising cash and credit facilities.
Investors will be listening for any updates on the opportunities in gaming and cryptocurrencies. Epic Games President Adam J. Sussman has a seat on AMC’s board, so it would not be too farfetched to see some collaboration there. Aron could also tip his hand to any potential partnership with GameStop, which investors have been requesting.
In addition, AMC recently raised its ticket prices, which Aron expects has been “palatable” for moviegoers and is something he hopes will translate to the bottom line.
Investors are widely anticipating AMC’s expansion into cryptocurrencies. The movie chain is expected to begin accepting bitcoin payments by year-end and will also add support for Dogecoin in early 2022.
Now the company is exploring the issuance of its own cryptocurrency. Aron suggested in a recent interview with CNBC that an AMC coin could potentially be in the works, saying,
“There are a lot of reasons why AMC could be a successful issuer of cryptocurrency as well as a redeemer of cryptocurrency. That’s just one of half a dozen ideas that we’re working on right now.”
AMC is one of a growing number of companies that are making a crypto push, the most recent of which has been Walmart.