Venom let there be carnage amc8/31/2023 ![]() From a number of Marvel movies to the Matrix 4, the movie theatre industry will have many openings with the potential to fill up their cinema halls once again. To put this in perspective the forecast for Cinemark’s theaters is only a 35.51% deficit with respect to Q4 2019.ĪMC might find a way to overcome this negative forecast thanks to the high number of blockbuster openings coming this quarter. Our prediction is that the company will experience visits 58.24% lower than Q4 2019. Our Q4 foot traffic forecast predicts a stable level of foot traffic even for the rest of the quarter, with no signs of significant growth. More precisely, in the first 26 days of October we have registered visits in excess of 7 million: 58.71% lower than pre-pandemic levels. In Q4 we predict that the entertainment giant will not experience significant growth of foot traffic. for the first 26 days of October and the prediction for visits throughout the quarter. Thanks to Olvin’s platform we can assess the foot traffic performance of AMC’s theaters in the U.S. Comparisons aside, foot traffic data doesn’t look promising for AMC and we believe this will be reflected in the financials results reported. ![]() ![]() Despite the faster foot traffic recovery, Cinemark also reported 16.00% of pre-pandemic revenue in Q1 and 30.76% in Q2.įor a business that fundamentally requires physical presence, low traffic equals low revenue and AMC is no exception.ĪMC’s recovery has been alarmingly slow, especially if compared to the one of Cinemark who already reached 63.46% of pre-pandemic visits in Q3 2021. In particular, AMC reported 12.35% of pre-pandemic revenue in Q1 and 29.53% in Q2. Throughout the first half of the year, the low levels of foot traffic resulted in even lower revenue. To put this in perspective, its competitor Cinemark theaters were already experiencing 54.65% of pre-pandemic visits in Q1 2021 that subsequently increased to 59.83% in Q2. In Q1 2021 visits were only 38.39% of visits recorded in Q1 2019, in Q2 traffic improved but remained still at 41.93% of pre-pandemic levels. Since the beginning of the year AMC has struggled to bring foot traffic back to pre-pandemic levels. ![]() This means that foot traffic still remains one of the best indicators of financial performance for the theatre chain, allowing us to extract a great deal of insights by looking at past and future visits. Unfortunately for AMC, there is not a single line of revenue on their income statement that does not depend on foot traffic or that can be moved online. Going to the movies has and will always require the act of physically visiting the cinema. Given the nature of the business, the company’s management doesn’t have the luxury of being able to transition to new models that are not as reliant on in-person visits at their locations. Correlation Between Foot Traffic And Revenue Ever since then, the company’s performance has suffered heavily from the decrease in visits. The chart below displays this impact with the cumulative number of visits for the aforementioned cinemas from the beginning of Q1 2019 to the end of Q3 2021.Īt the beginning of the pandemic in Q1 2020 visits started to drop drastically, hitting their lowest point in Q2 2021 at 8.1 million visits (compared to 55.8 million the previous year). Starting from February 2020 movie theaters have experienced decreased foot traffic, imposed limits on capacity and mandatory suspensions of operations. It’s not news that AMC has been hit by the COVID-19 pandemic and the numerous lockdowns and regulations regarding the entertainment sector. To give context and gain deeper understanding we will also use data from 75 Cinemark Theaters spread throughout the States. and look at the predictions for the 3rd and 4th quarter of 2021. In this report, we look at AMC’s foot traffic performance over the past 3 years by looking at 236 of its movie theaters in the U.S. On November 8, AMC Entertainment ( NYSE:AMC) will report its earnings for the third quarter of 2021. The company is experiencing a slow foot fall recovery and due to the nature of its business it has no way to transition to models that don’t require physical presence. New data from Olvin, a New York and London-based retail analytics firm shows that AMC Entertainment has seen its foot traffic still at less than half of pre-pandemic levels in Q3.
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