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
“This combines the excellent experience of Zoom with the comfort and state-of-the-art sight and sound technology of AMC’s modern and centrally located theaters,” the companies said, in a statement released after market close on Monday.
stock rose 0.9% in after-hours trading, while Zoom’s stock fell 0.1%.
Zoom Rooms at AMC will be launched in up to 17 major U.S. markets in 2023. The Zoom Rooms will be available in three-hour blocks, with typical auditorium sizes expected to be between 75 and 150 seats, depending upon the theater.
Food and beverages, possible movie viewings, and concierge-style meeting services will also be available at an added cost, the companies said.
“Now through this partnership of Zoom and AMC, we have the best of both worlds — the spectacular communications platform of Zoom combined with the comfort, size, scale, and state-of-the-art sight and sound capabilities of AMC’s centrally located theatres,” said AMC Chief Executive Adam Aron in a statement. “This creates an all-new product in major cities across the U.S. for companies and meeting planners.”
AMC’s third-quarter results on deck: Will the meme-stock darling shake off concerns of a box-office slowdown?
The partnership was announced on the eve of AMC’s third-quarter earnings on Tuesday. Concerns of a box-office slowdown in August and September have been swirling around the company. In August, when AMC reported its second-quarter results, Aron spoke of the “dearth” of big titles being released in that month and September, adding that “things will slow for several weeks.”
Nonetheless, Wedbush analyst Alicia Reese sees positives looming on the horizon. “Theatrical exhibition is on the path to normalization, with a strong upcoming release slate over the balance of the year and throughout 2023,” she wrote in a note.
Analysts surveyed by FactSet are looking for AMC to report a net loss of $238 million, or 20 cents a share, compared with a loss of $224 million, or 27 cents a share, in the same quarter of last year. The company is expected to report sales of $961 million, up from $756 million in the same period last year, according to FactSet.
AMC’s admissions revenue is expected to be $552 million, compared with $421 million in the same period last year, according to FactSet. Analysts project concessions sales of $324 million, up from $263 million in the prior year’s quarter.
Of eight analysts surveyed by FactSet, three have a hold rating and five have a sell rating for AMC.