Analyst Note| Neil Macker, CFA |
AMC posted a strong second quarter, as revenue and adjusted EBITDA beat FactSet consensus expectations. Ad revenue in the U.S. rebounded to growth after eight straight quarters of declines. The niche subscription streaming platforms like Acorn and Shudder, along with AMC+, continue to gain momentum, with the services on pace to end 2021 with over 9 million subscribers, up 50% from the end of 2020 and ahead of the pace needed to meet the 2025 guidance of 20 million-25 million subscribers. We are maintaining our narrow moat rating and $58 fair value estimate.