Movie theater company AMC reported its third quarter results recently and also announced that it will be increasing the price of its MoviePass-style subscription service, Stubs A-List, which allows members to see up to three movies a week, including IMAX and Dolby.
AMC announced that it would be raising the price of the service, which has now over 500,000 members since launching in June, in several states.
The theater chain said it intends to raise the price from $19.95 to $23.95. In some states the price will increase by $4 and in others by $2 a month. The pricing changes will take effect starting next January.
“When we launched AMC Stubs A‑List back in June, we did so with the idea that moviegoing could and should be more accessible, convenient, and affordable,” wrote CEO Adam Aron to current A-List subscribers and standard members of its Stubs rewards program.
“Candidly, we are blown away and so appreciative that so many movie fans throughout the United States have agreed. In just four and a half months from the program’s launch, more than 500,000 people will have joined A‑List. Already, after only a few months’ time, one in every 10 guests at an AMC theatre across the country is a member of A‑List and that number seems to grow every day.”
For the third quarter, the Kansas-based company reported a loss of 82 cents on a per share basis. Adjusted for one-time gains and costs, the losses were 74 cents a share. Analysts on average were waiting for a loss of 49 cents a share. Revenue at $1.22 billion was in line with expectations.
Aron said on the earnings call, “Company-wide, we achieved the highest third quarter attendance ever for global AMC driven primarily by an 8.6% surge in attendance at our U.S. theaters. Despite U.S. and European admissions revenue that was essentially flat year-over-year for the quarter, food and beverage revenue globally was up 6.5%, other revenues globally were up 33.5%. This all led to our reporting ahead of consensus adjusted EBITDA for the quarter of $142.4 million. That figure was significantly ahead of our internal expectations going into the quarter.
He added, “And when combined with our stellar first half results, nine month year-to-date adjusted EBITDA for all of AMC now stands at $665.1 million, which is up a dramatic 24.5% over the first nine months of 2017. $665.1 million of adjusted EBITDA this year so far versus $534.3 million of adjusted EBITDA last year so far, that’s an increase of $130.8 million. Can I repeat that figure for emphasis? AMC’s adjusted EBITDA is running more than $130 million ahead of last year for the same nine month time period. Accordingly, we can now say with high confidence that from an adjusted EBITDA standpoint, full-year 2018 will be a record year for AMC, the best ever in AMC’s 98-year history exhibiting movies.”