AMC Entertainment Holdings, Inc. (AMC) has reported a 70.32 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $8.40 million, or $0.07 a share in the quarter, compared with $28.30 million, or $0.29 a share for the same period last year. Revenue during the quarter surged 67.55 percent to $1,283.40 million from $766 million in the previous year period. Gross margin for the quarter expanded 118 basis points over the previous year period to 62.50 percent. Total expenses were 95.68 percent of quarterly revenues, up from 92.26 percent for the same period last year. That has resulted in a contraction of 342 basis points in operating margin to 4.32 percent.
Operating income for the quarter was $55.40 million, compared with $59.30 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $251.30 million compared with $146.50 million in the prior year period. At the same time, adjusted EBITDA margin improved 46 basis points in the quarter to 19.58 percent from 19.13 percent in the last year period.
"AMC is off to a tremendous and record start in 2017. AMC’s ability to purposefully act on the opportunities and innovations that drive growth continues to set us apart and further solidifies our leadership position among movie-theatre operators in the U.S. and Europe," said Adam Aron, AMC chief executive officer and president. "Achieving record first quarter 2017 Adjusted EBITDA of $251.3 million is tangible evidence of what we have been saying for the better part of a year, that the earnings power of this new incarnation of a larger and more influential AMC is enormous compared to other operators and even to our own recent past."
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