Blog Coverage AMC Entertainment Completed Nordic Cinema Group Acquisition; Adds 68 More Theatres under its Portfolio

Upcoming AWS Coverage on Reading International Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 30, 2017 / Active Wall St. blog coverage looks at the headline from AMC Entertainment Holdings, Inc. (NYSE: AMC) as the Company announced on March 28, 2017, that it has completed the acquisition of Nordic Cinema Group Holding AB, based in Stockholm. The acquisition was announced on January 23, 2017, where AMC agreed to pay $929 million to purchase Nordic Cinema Group from European private equity firm Bridgepoint and Swedish media group, Bonnier Holding in an all-cash transaction. Register with us now for your free membership and blog access at:

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One of AMC Entertainment Holdings’ competitors within the Movie Production, Theaters space, Reading International, Inc. (NASDAQ: RDI), reported on March 13, 2017, its results for the year-ended and quarter-ended December 31, 2016. AWS will be initiating a research report on Reading International in the coming days.

Today, AWS is promoting its blog coverage on AMC; touching on RDI. Get all of our free blog coverage and more by clicking on the link below:

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Nordic Cinema Group

Nordic Cinema Group currently holds 68 theatres, 463 screens, and about 68,000 seats in nearly 50 large and medium-sized cities in the Nordic and Baltic nations. The Company is quite noticeably the largest theatre operator in the region. Nordic reported about $349 million of revenue for FY15, which included box office revenues of $229 million. For the twelve-month period ended September 30, 2016, the net revenue for Nordic Cinema Group was $375 million.

The addition of Nordic Cinema Group to AMC’s portfolio has enabled AMC to hit the never-before-reached movie exhibitor milestones of 1,000 theatres and 11,000 screens across the globe. AMC currently operates theatres in 15 countries and is the largest operator in the US, Europe and worldwide.

Strategic Benefits

AMC expects to realize approximately $5 million of annual cost synergies and expects to maintain its current quarterly dividend. AMC recently announced its quarterly dividend for Q4 FY16, ending December 31, 2016, on February 14, 2017. The Company reported quarterly dividend of $0.20 per share of Class A and Class B common stock for Q4 FY16.

Nordic Cinema Group is the current market share leader in five of the seven countries in which it operates. AMC, which is also a market leader in nine countries, expects to leverage this potential to establish itself as the global leader. The Nordic Cinema Group’s acquisition broadens and diversifies AMC’s European platform while creating an established presence for AMC across 15 countries with approximately 1,000 theatres and 11,000 screens. This positions AMC with large-scale diversification and multiple growth opportunities.

Nordic Cinema Group has an active growth portfolio with 10 theatres under active development or re-development across six nations, where most of them are expected to open by the end of FY17 and FY18. Nordic theatres are highly profitable with lucrative operating margins and free cash flow generation. As Nordic has recently updated its circuit, AMC anticipates minimal capital expenditures for the existing theatres.

AMC Growth Prospects

The acquisition of Nordic Cinema Group is set to expand AMC’s foothold in the entertainment business. The Company has executed a definite expansion strategy to leverage expertise and infrastructure of leading market players in the theatre operating industry. Recently, on January 19, 2017, AMC announced that the number of IMAX at AMC’s locations is expected to grow 15% on a y-o-y basis by the end of Q1 FY17.

Prior to the announcement, AMC acquired Carmike on December 21, 2016, for approximately $1.1 billion where Carmike’s shareholders received approximately $33.06 in cash for each Carmike’s share. The Company also acquired Odeon and UCI Cinemas Holdings for approximately $1.2 billion on November 30, 2016. The acquisition of Carmike and Odeon raised the theatrical footprint of AMC to about 900 locations while enabling it to expand its presence in the low-cost multiplexes in rural parts of the nation.

Details of the transaction

AMC has completed the purchase in an all-cash transaction of $651.9 million which includes payment of interest on the equity value and repayment of shareholder loans. Additionally, AMC has repaid indebtedness of Nordic Cinema Group of about $144.3 million and indebtedness of $168.2 million as of March 28, 2017.

Stock Performance

AMC Entertainment’s share price finished yesterday’s trading session at $30.95, climbing 1.31%. A total volume of 1.38 million shares exchanged hands, which was higher than the 3 months average volume of 1.23 million shares. The stock has advanced 0.08% and 12.03% in the last six months and past twelve months, respectively. The stock is trading at a PE ratio of 27.41 and has a dividend yield of 2.58%.

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