AMC partners with Zoom to turn movie theaters into “Zoom Rooms”

0

By James Rogers

Zoom Rooms at AMC will launch in 17 major US markets in 2023 and will be available in three-hour blocks

Meme stock darling AMC Entertainment Holdings Inc. has teamed up with Zoom Video Communications Inc. to turn some of the movie theater chain’s locations into so-called Zoom Rooms.

Zoom rooms are workspaces for hybrid teams, according to Zoom (ZM). “It combines the excellent experience of Zoom with the comfort and cutting-edge visual and sound technology of AMC’s modern, centrally located theaters,” the companies said in a statement released after the market closed Monday.

Shares of AMC (AMC) rose 0.9% in after-hours trading, while shares of Zoom fell 0.1%.

Also see: AMC Missed ‘Golden Opportunity’ to Pay Off $5.4 Billion Debt With EPAs, Analyst Says

AMC’s Zoom Rooms will launch in up to 17 major U.S. markets in 2023. Zoom Rooms will be available in three-hour blocks, with typical auditorium sizes between 75 and 150 seats, depending on the theater.

Food and beverages, possible film screenings and concierge-style meeting services will also be available at an additional cost, the companies said.

“Now, through this partnership between Zoom and AMC, we have the best of both worlds: Zoom’s spectacular communications platform combined with the comfort, size, scale, and state-of-the-art visual and audio capabilities of Zoom. ‘AMC theaters,” AMC CEO Adam Aron said in a statement. “It creates a whole new product in major cities across the United States for businesses and meeting planners.”

AMC’s third-quarter earnings on deck: Will the meme darling allay concerns of a box office slowdown?

The partnership was announced Tuesday on the eve of AMC’s third quarter results. Fears of a box office slowdown in August and September swirled around the company. In August, when AMC released its second quarter results, Aron spoke of the “shortage” of big titles released that month and September, adding that “things will slow down for several weeks.”

Nonetheless, Wedbush analyst Alicia Reese sees some bright spots on the horizon. “Theatrical exhibition is on the path to normalization, with a strong slate of releases coming for the rest of the year and throughout 2023,” she wrote in a note posted Thursday.

Analysts polled by FactSet expect AMC to report a net loss of $238 million, or 20 cents per share, compared with a loss of $224 million, or 27 cents per share, in the same quarter last year. last year. The company is expected to post sales of $961 million, up from $756 million in the same period last year, according to FactSet.

Watch now: Are you tempted to buy AMC’s new APEs? Be prepared to lose it all, warns company

AMC’s admissions revenue is expected to be $552 million, up from $421 million in the same period last year, according to FactSet. Analysts forecast dealership sales of $324 million, compared to $263 million in the year-ago quarter.

Of eight analysts polled by FactSet, three have a hold rating and five have a sell rating for AMC.

-James Rogers

 

(END) Dow Jones Newswire

11-08-22 0736ET

Copyright (c) 2022 Dow Jones & Company, Inc.

Share.

Comments are closed.