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AMC Partners With Fandango & Atom for Stubs A-List Ticketing

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AMC Entertainment Holdings, Inc. (AMC - Free Report) recently announced that the members of its premiere membership program called Stubs A-List will be able to book movie tickets via ticket booking applications called Fandango, owned by NBCUniversal, a division of Comcast (CMCSA - Free Report) and Atom Tickets.

The members of the “VIP tier of AMC Theatres’ loyalty program” can use their membership number on the ticketing service platforms and use the ticket for one the three movies per week, that they are entitled to per the program. Additionally, the fee related to online ticketing will also be waived off.

Per Bizjournals, “Stubs A-List includes up to three movies per week for $20 per month. The program is available for any showtime at any AMC location in any format, including Imax, Dolby Cinema, RealD and AMC’s other premium formats.”

We believe that AMC Entertainment’s continuous efforts to provide the audience at movie theaters with convenience and flexibility will eventually boost the company’s financials as more subscribers join in.

Notably, in the last reported quarter, the company posted revenues of $1.443 billion, surpassing the Zacks Consensus Estimate of $1.432 billion.

Other Developments at AMC

Most recently, the company raised $600 million in funding from private equity firm Silver Lake Partners. The PE firm will buy convertible notes of AMC on Sep 28.

Of the total proceeds from the funding, $421 million will be used to buy back 32% of the Class B shares from Chinese investor, Dalian Wanda Group, controlled by Wang Jianlin. The company will also pay dividend of $1.55 per share to all Class A and Class B shareholders on the same date.

We believe these shareholder friendly initiatives will boost investors’ confidence going ahead and drive shares.

These along with the steps taken up by AMC Entertainment to cater to the requirements of consumers will benefit the company’s top and bottom line in the long run. Notably, the Zacks Consensus Estimate for this Zacks Rank #3 (Hold) company’s revenues is pegged at $1.20 billion for the third quarter 2018, indicating a 1.7% year-over-year increase.

Stocks to Consider

A few better-ranked stocks in the technology sector include Microsoft (MSFT - Free Report) and Apple (AAPL - Free Report) , both having a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy stocks here.

The long-term earnings growth rate for Microsoft and Apple is 12.3% and 9.7%, respectively.

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