AMC Theatres has announced AMC’s Go Plan, an ambitious investment in the future of moviegoing at AMC. Through AMC’s Go Plan, AMC expects to invest between $1 billion and $1.5 billion over the next four to seven years, enhancing its locations in the United States and Europe. AMC plans to provide guests with an even greater selection of premium experiences and theater upgrades.
AMC’s Go Plan includes investing in some of AMC’s best and most productive theaters. In addition to recent and current renovations at AMC flagship locations like AMC Lincoln Square 13 and AMC Empire 25 in New York, and AMC Burbank 16 in Los Angeles, AMC has a long list of high-performing theaters that could receive significant upgrades as part of AMC’s Go Plan. Similarly, for ODEON Cinemas in Europe, there are opportunities to develop a number of additional Luxe Cinemas, especially in the UK.
On the premium moviegoing front, AMC’s consumer data makes it clear that moviegoers are increasingly seeking out premium large format experiences. Through AMC’s Go Plan, AMC expects to greatly expand its premium large format (PLF), and extra-large format (XLF) offerings, as well as expand the number of Laser at AMC auditoriums. This includes IMAX with Laser at AMC, Dolby Cinema at AMC, PRIME at AMC, and AMC’s new format XL at AMC.
The timing and extent of AMC’s Go plan will be calibrated according to the box office recovery trajectory and AMC’s available capital, liquidity levels, and leverage ratios. Components of the plan include an increased number of IMAX deployments and IMAX with Laser could be installed in more than two-thirds of current IMAX auditoriums. The number of PRIME at AMC PLF houses could increase from the current 31 up to 100. The AMC Go Plan would also significantly increase the number of Dolby Cinema at AMC locations.
At the end of September, AMC had 2,137 auditoriums in the United States that featured Laser at AMC. The company expects to double or triple that count over the next seven years. AMC’s Go Plan also includes the expected roll out of their newest initiative, XL at AMC, for 200-250 auditoriums, in addition to the 68 XL auditoriums operating in Europe. XL at AMC will be offered in auditoriums where the screen is at least 40-feet wide and will feature 4K laser projection on the biggest non-PLF screen in the building.
AMC Chairman and CEO Adam Aron commented, “With AMC’s Go Plan, AMC is officially going back on offense. First and foremost, that means investing in the theatrical experience in our movie theaters, both at AMC locations in the U.S. and ODEON Cinemas in Europe. This Go Plan is AMC’s most aggressive, forward-looking theatrical investment initiative this decade, and will greatly enhance the moviegoing experience for millions of our U.S. guests. And, of course, we will manage the timing of our Go Plan investments consistent with the prudent management of our debt levels, leverage, and liquidity.”
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