AMC Entertainment Holdings Inc (NYSE: AMC) stock surged 5.05% on Wednesday, driven by the company's impressive fourth quarter 2024 earnings and an optimistic outlook for the coming years. The movie theater chain reported strong financial results, signaling a continued recovery from the pandemic-induced slump.

AMC's revenue increased by 18.3% year-over-year to $1.3 billion in Q4 2024, driven by a 20% increase in attendance to 62.4 million guests. The company achieved record food and beverage revenue per patron of $7.15, contributing to the overall revenue growth. Adjusted EBITDA more than tripled to $164.8 million compared to the same quarter last year, highlighting the company's operational leverage.

Commenting on the results, AMC's CEO Adam Aron stated, "AMC revenue in the fourth quarter was up 18% year over year, and our adjusted EBITDA of $164.8 million was more than triple. We handily beat consensus estimates for both revenue and for adjusted EBITDA in the fourth quarter of 2024." He further noted that the company generated over $200 million in cash from operating activities and $114 million in free cash flow, marking the highest quarterly cash flow post-pandemic.

AMC's management expressed optimism about the industry's recovery, driven by an expected increase in movie releases and a strong slate of upcoming films. Aron projected the domestic industry box office could see a $0.5 billion to $1 billion growth in 2025 compared to 2024, stating, "We really do believe that the box office will be in 2025, will be somewhere between $0.5 billion and $1 billion more in 2025 than it was in 2024."

The company also highlighted its strategic initiatives under the "AMC GO Plan," aimed at enhancing the guest experience and driving profitable attendance. These initiatives include adding more premium experiences, improving seating comfort, and introducing innovative loyalty and subscription programs.