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AMC swings to annual profit amid sales growth

June 19, 2007|From the Associated Press

KANSAS CITY, MO. — Theater chain AMC Entertainment Inc. on Monday reported its first annual profit in 10 years, thanks to its acquisition of rival Loews Cineplex Entertainment Corp. and an advertising partnership's initial public offering.

AMC parent Marquee Holdings Inc. reported earning $134.1 million during the fiscal year ended March 29, compared with a $190.1-million loss during the same period a year earlier. Revenue increased 46% from $1.69 billion.

Although privately held, AMC reports financial numbers because some of its debt is publicly traded.

Kansas City, Mo.-based AMC said admission revenue rose 46% to $1.66 billion, thanks to a 32.7% overall increase in attendance and a 6.2% hike in ticket prices.

Looking just at theaters that had been open for at least a year -- a key measure of retail health -- AMC reported a 7.9% increase in revenue over the previous year.

A majority of the new revenue came from theaters acquired when AMC bought Loews in January 2006. The acquisition strengthened AMC's position as the nation's second-largest theater chain. Regal Entertainment Group is the market leader.

AMC also got a boost from the $233.7 million it received from the initial public offering of National CineMedia, an in-theater advertising firm it formed last year with rivals Regal and Cinemark Holdings Inc.

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