Movie Channel AMC Explores NFTs After Big Screen Return Boosts Sales

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An AMC cinema is pictured amid the coronavirus disease (COVID-19) pandemic in the Manhattan neighborhood of New York City, New York, United States on January 27, 2021. REUTERS / Carlo Allegri / File Photo / File Photo

Nov. 8 (Reuters) – The head of AMC Entertainment (AMC.N) said on Monday that the movie chain was in talks with Hollywood studios to launch non-fungible tokens (NFTs), after the company easily overtook the quarterly revenue estimates as moviegoers returned to the big screen.

The company, which is looking to accept bitcoin as a form of payment, said it is also considering launching its own cryptocurrency and selling its own brand of popcorn in grocery stores.

“It’s the 21st century after all, and it looks like there is a real opportunity for AMC in these areas,” CEO Adam Aron said on a post-benefit call, referring to his foray into NFT, a type of digital asset. which uses the blockchain to register ownership of items such as images and videos.

But the talks were still preliminary and there was no assurance, he said.

The world’s largest film company struggled during the pandemic as attendance halted, but increased COVID-19 vaccinations, easing restrictions and new titles like “Shang- Chi “and” Black Widow “are helping to fill movie theaters again.

Still, Aron warned of other challenges ahead and said the company needed to sell more tickets because adjusted core earnings were below pandemic levels.

AMC shares have fallen nearly 5% in extended trading, but have risen more than twenty times in value so far this year, largely thanks to an army of retail investors coordinating their purchases on forums such as Reddit’s WallStreetBets.

On a per share basis, it lost 44 cents. Analysts had expected a loss of 53 cents, according to IBES data from Refinitiv.

Revenue rose to $ 763.2 million from $ 119.5 million, beating estimates of $ 708.3 million.

“However… no one should be deluded that there is no longer a challenge ahead of us. The virus continues to be with us,” said Aron.

Report by Nivedita Balu in Bengaluru; Editing by Devika Syamnath

Our Standards: Thomson Reuters Trust Principles.


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