Tencent Securities News According to a report on the US financial website MarketWatch, the stock price of AMC Entertainment Holding Inc. (NSYE: AMC), the largest US cinema line under the Wanda Group, rose sharply in post-market trading on Monday because the company's financial reports showed that its first-quarter results exceeded Wall Street analysts' expectations.
According to the report, AMC Entertainment Holdings' net profit for the first quarter was 17.7 million US dollars, with earnings per share of 14 cents. Compared with net profit and earnings per share for the same period last year, the net profit and earnings per share were 8.4 million US dollars and 7 cents, respectively. This performance exceeded analysts' previous expectations. According to a survey by financial information provider FactSet, analysts on average expect AMC Entertainment Holdings to earn 7 cents per share in the first quarter. Revenue for the quarter was $1.38 billion, up from $1.28 billion in the same period last year, and also exceeded the average estimate of $1.35 billion of analysts surveyed by FactSet.
Wanda Group completed a $2.6 billion acquisition of AMC Entertainment Holdings in 2012, thus becoming the world's largest cinema line operator. According to media reports, according to the agreement reached between the two parties at the time, after the transaction is completed, Wanda will take over 4,865 screens (including 2,171 3D screens and 124 IMAX screens) from AMC's 338 cinemas, operate AMC as its wholly-owned subsidiary, and inject no more than 500 million US dollars into it every year. Additionally, AMC's nearly 20,000 employees will continue to work in theaters across 32 states in the US. The company will continue to produce film programs according to the original plan, and the company headquarters in Kansas City will also be retained.
By December 2013, Wanda Group announced that AMC Entertainment Holdings initially publicly offered 18,421,053 Class A common shares at a price of 18 US dollars. If overallotted, it raised nearly 400 million US dollars in capital; it was also officially listed and traded on the New York Stock Exchange on December 18, 2013, local time in the US.
AMC's opening price on the day of listing was $19.18, up 7% from the issue price. After AMC's listing, the total market value of the company's shares reached US$1,868 billion, of which the market value of shares held by Wanda Group was about US$1,460 billion. A source familiar with the inside story revealed that compared to Wanda Group's investment of 700 million US dollars in equity value of AMC's acquisition price of 2.6 billion US dollars (of which 1.9 billion US dollars is succession debt), the revenue more than doubled in 1 year and 3 months after the merger and acquisition, creating a perfect record for Chinese companies to acquire American companies and go public in the US.
On the same day, AMC Entertainment Holdings' stock price closed up $0.90 to $17.20 in regular trading on the New York Stock Exchange, or 5.52%. Following the release of the earnings report, the stock climbed 5.8% again in after-hours trading after regular trading closed. (Nebula)