'Deadpool & Wolverine' has already hit a record for AMC, says CEO Adam Aron

By James Rogers

AMC CEO Adam Aron says that "Deadpool & Wolverine" starring Ryan Reynolds and Hugh Jackman, has already hit a record ahead of its opening in July

AMC Entertainment Holdings Inc. is enjoying record first-day sales for the forthcoming movie "Deadpool & Wolverine," according to the company's CEO Adam Aron.

"Many big movies will open in May, June & July. Including Deadpool & Wolverine starring Ryan Reynolds and Hugh Jackman. Opens July 25," he wrote on X, formerly known as Twitter, Wednesday. "Some 200,000 movie fans have bought their AMC tickets already. This is more Day 1 ticket sales at AMC than for any other R-rated movie ever."

AMC's (AMC) recent first quarter-results felt the lingering impact of last year's Hollywood strikes, although Aron is optimistic that the box office will rebound. Speaking during a conference call to discuss the results earlier this month he said that the slate of movies later in 2024, into 2025 and in the first half of 2026 "hold great promise."

Related: AMC's Q1 loss narrows and 'better times are ahead' says CEO Adam Aron

The CEO said that second-quarter box office will be sequentially stronger than the first quarter, but will still fall "significantly below" last year's second quarter, which was "the single strongest quarter in all of 2023."

However, he expects a "stronger, healthy and growing" summer box office boosted by "Deadpool & Wolverine" and forthcoming movies "Despicable Me 4" and "Twisters."

AMC is reaping the benefits of a post-pandemic box recovery, according to analyst firm B. Riley Securities, in a recent note. B. Riley maintained its neutral rating and $8 price target for AMC.

Related: AMC enjoying box-office 'outperformance' amid post-pandemic recovery, says B. Riley

Shares of AMC, which soared last week amid the meme-stock rally that also sent shares of GameStop Corp. (GME) skyrocketing, are down 0.9% premarket Wednesday.

AMC's debt load is also in the spotlight. During the conference call to discuss the first-quarter results, Aron said that the movie-theater chain and original meme stock has about $4.5 billion of debt, with "huge maturities" coming in 2026.

Last week, the movie-theater chain said it would issue 23.3 million shares in exchange for $163.9 million in bonds, in a debt-for-equity swap. The bonds mature in 2026, according to a regulatory filing. Also last week, AMC said it had completed a $250 million at-the-market offering of equity capital.

Related: AMC bonds holding most of their gains after last week's debt-for-equity swap

AMC shares are down 24% in 2024, compared with the S&P 500 index's SPX gain of 11.6%.

Of seven analysts surveyed by FactSet, four have a hold rating and three have a sell rating for AMC.

-James Rogers

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05-22-24 0817ET

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