AMC Entertainment’s (NYSE: AMC) NFT Strategy Just Became a Lot Clearer

Submit

AMC Entertainment (NYSE:AMC), the distressed movie theater chain that has seen a dramatic reversal in fortunes amid a surge in the interest of retail investors, just announced its earnings for the third quarter of 2021. While the results show broad-based recovery, the company’s financial bottom-line is yet to match its pre-pandemic levels.

AMC Entertainment Q3 2021 Earnings Snapshot

For the three months that ended on the 30th of September 2021, AMC Entertainment reported non-GAAP revenue of $755.6 million on the back of 40 million worldwide theatergoers, divided among 596 domestic and 351 international theaters. While the company generated a negative free cash flow of -$138 million, its cash balance at the end of the quarter stood at $1.6125 billion. Finally, the company reported an adjusted EBITDA of -$5.9 million along with a net loss of -$224.2 million.

AMC Insiders Dump More Than $10 Million Of Stock In Just Two Weeks!

The following chart illustrates these results:

(All figures are in millions of dollars)

The Company’s Earnings Call Provides Crucial Insight Into Cryptos and NFTs

During the earnings call, AMC Entertainment CEO Adam Aron detailed the company’s recent revenue-boosting exercise that leverages the multi-billion-dollar popcorn industry. Starting in 2022, AMC would open kiosks, counters, and stores in malls across the country where ready-to-eat and packaged popcorns would be sold. The company also intends to expand this operation to grocery and convenience stores.

On the subject of cryptocurrencies, AMC Entertainment CEO announced that the company was working to integrate Bitcoin, Ethereum, Litecoin, Dogecoin, and Shiba Inu in its payment ecosystem. The company is also considering the launch of its own cryptocurrency. While AMC Entertainment would accept payment in these cryptocurrencies, the company does not intend to hold them on its balance sheet in order to minimize price volatility-related risks.

On the topic of NFTs, Adam Aron noted:

AMC Entertainment’s Short Interest Is Back Above 20 Percent of Its Float, as per a Tabulation by Ortex

“Similarly, I can confirm to you today that we are now in conversation with multiple major Hollywood studios about the concept of joint venturing commemorative NFTs related to major film titles that show in our theaters. This is the 21st Century after all. And it would seem that there may be real opportunity for AMC in these areas.”

These comments by AMC Entertainment CEO offer the clearest indication so far that the company is pursuing NFTs seriously. Back in September, Aron had reached out to GameStop (NYSE:GME) for a possible collaboration. We still do not know the details about the nature of the partnership that is being mulled over. For instance, is AMC Entertainment willing to offer up its gigantic screens to gamers? What about Esports events? After all, AMC Entertainment theaters can serve as a perfect venue for holding these gaming events. Nonetheless, we do believe that NFTs might play an important role in the budding relationship between the two companies. After all, GameStop has now activated a dedicated website for NFTs that references players, creators, and collectors, thereby indicating an incoming ecosystem to cater to the gaming community. There is a hefty chance that AMC Entertainment’s commemorative NFTs land on GameStop’s platform.

Regardless of what shape this collaboration takes, AMC Entertainment bulls should celebrate the fact that the company’s CEO is actively pursuing new strategies to build upon the current retail-driven momentum. Who knows, the company might yet strike gold.

The author has no position in any of the stocks mentioned. WCCF TECH INC has a disclosure and ethics policy.
Submit