AMC Entertainment Holdings (AMC) - Get AMC Entertainment Holdings Inc. Class A Report rose sharply Friday after the movie-theater giant reported a 2018 revenue and earnings comeback, fueled in part by a record year at the box office across the industry.
AMC's stock price shot up 17.46% to $16.48 as the theater chain reported 2018 net income of $110.1 million vs. the $487.2 million loss AMC reported in 2017.
Revenue rose 7.5% to $5.5 billion in 2018, the company said.
AMC also saw a 6.1% increase in the number of moviegoers at its theaters in 2018, hitting 359 million, an all-time high, the company said. Admission revenue rose 4.8%, while food and beverage sales jumped 8%.
Net earnings for the fourth quarter came in at $170.6 million, though most of that came from the "remeasurement of a derivative liability and derivative asset," AMC said.
Movie theaters across the U.S. reported a record box office year in 2018, with revenue up nearly 7% to $11.9 billion, said AMC, which accounted for somewhat under half of that total.
"The tremendous momentum of the industry box office, which was the fifth record-setting year," as well as various company sales and marketing initiatives, helped power the increase in revenue and earnings, said Adam Aron, AMC's CEO and president, in a press release.
"AMC continued to deliver strong results in the fourth quarter of 2018, capping a record-setting full year performance, the best ever in our 98-year history," Aron said.