Greetings, and thank you for standing by. Welcome to the AMC Entertainment third quarter 2022 earnings conference call. During the presentation, all participants will be in a listen-only mode, and afterwards we'll conduct a question-and-answer session. At that time, if you have a question, please press the one followed by the four on your telephone. If at any time during the conference you need to reach an operator, please press star zero. Today's call is being recorded Tuesday, November 8th, 2022. Now I'd like to turn the conference over to John Merriwether. Please go ahead.
Thank you, Scott. Good afternoon, everyone. I'd like to welcome everyone to AMC's third quarter 2022 earnings webcast. With me this afternoon is Adam Aron, our Chairman and CEO, and Sean Goodman, our Chief Financial Officer. Before I turn the call and the webcast over to Adam, let me remind everyone that some of the comments made by management during this webcast may contain forward-looking statements that are based on management's current expectations. Numerous risks, uncertainties, and other factors may cause actual results to differ materially from those that might be expressed today. Many of these risks and uncertainties are discussed in our most recent public filings, including our most recently filed 10-K and 10-Q. Several of the factors that will determine the company's future results are beyond the ability of the company to control or predict.
In light of the uncertainties inherent in any forward-looking statements, listeners are cautioned to not place undue reliance on these statements. The company undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information or future events. On this webcast, we may reference non-GAAP financial measures such as Adjusted EBITDA, Constant Currency, Operating Cash Burn, among others. For a full reconciliation of our non-GAAP measures to GAAP results, please see our earnings release posted in the investor relations section of our website earlier today. After our prepared remarks, there will be a question-and-answer session. This afternoon's webcast is being recorded and a replay will be available in the investor relations section of our website at amctheatres.com later today. With that, I'll turn the call over to Adam.
Thank you, John. Good afternoon, everyone, and thank you for joining us today. Even with the third quarter financially being flattish, we join you on this call today brimming with confidence that the recovery of AMC Entertainment is well underway. AMC welcomed more than 53 million guests to our theaters around the world in Q3 of 2022, a 33% increase compared to the third quarter of 2021. On our last quarterly webcast, we were encouraged that the July industry-wide domestic box office was down only 12% from the pre-pandemic July of 2019. We also did predict quite correctly that there would be a dearth of big movie titles being released in August and September of this year.
Even so, we also were ebullient about the movies coming out in the fourth quarter of 2022 and in calendar year 2023, and that is precisely our view again today. Despite a lackluster August and September, we're seeing that the industry-wide box office is already on a rebound, both domestically and globally, clawing and climbing its way back. In looking at the fourth quarter of 2022, it's worth noting that Warner Bros.' Black Adam, released in mid-October, had the highest domestic box office opening weekend gross of all time for any movie featuring Dwayne Johnson as a leading man. I also can confirm today that our advanced bookings at AMC and Odeon for Black Panther: Wakanda Forever are frothy and robust.
We are about as certain as we can be that the so-called Black Panther Two will be one of the biggest movies of the year, and that its ticket sales might even cause it to rise as high as the second-biggest movie of 2022, behind only Top Gun: Maverick. Of course, Q4 will continue with Disney's Strange World, with James Cameron's Avatar: The Way of Water, and with Damien Chazelle's Babylon. Anchored by the strengthening fourth quarter of 2022, let's get a better sense of this recovery by briefly going back to the beginning. Recall that when the pandemic hit the scene in early 2020, the industry-wide domestic box office, which is the basic measurement of the size of our industry, fell by more than 4/5 for the full year of 2020, leading to the lowest box office grosses since 1981.
In comparing to 2020, the domestic box office more than doubled in 2021. Our expectation for the full year of 2022, when this year is all over, is that the domestic box office will have dramatically risen and increased yet again by not quite, but almost by 75%. While no one's crystal ball is perfect this far in advance, based on our analysis of the movie titles currently expected to be released in 2023, we think that next year's box office should grow yet again by between 15% and 25%, and possibly by even more. Our confidence in looking ahead stems not only from a growing industry-wide box office but also because of the demonstrated agility of the AMC board and management team to skillfully navigate our way through crisis.
Since the beginning of the pandemic, we have taken bold and decisive steps to ensure a recovery for AMC Entertainment by taking action after action after action to enhance our marketing appeal and our operating profitability, while at the same time brilliantly raising capital. Over the last 2.5 years, AMC took in some $2.2 billion of new equity proceeds and another $2.6 billion of debt financings. In addition, we were able to amicably negotiate almost $1.5 billion of further benefit from asset sales, government support, and concessions from both our lenders and our theater landlords. Accordingly, at the end of the third quarter, AMC had just under $900 million of liquidity. Having ample liquidity is a bedrock of strength. We will use ours both to continue to grow, but also to continue to deliver.
Our smart financing activities include the recently announced refinancing just a few weeks ago of our $400 million Odeon term loan in Europe, taking the debt paid off to $144 million so far this year in total. There is also the introduction of our preferred equity units or APEs in August. In launching them, we said that the creation of APEs was nothing less than an all-defining moment in AMC's future as it gave us a new currency to help AMC to grow, to deliver, and to raise capital. We also said at the time to those who feared mindless dilution, that we would treat our new APE preferred stock as precious, and we will continue to do so.
So far, we have raised only $37 million of equity proceeds from the sale of APEs into the market. We have indeed been careful. As to APEs specifically, each AMC preferred equity unit was designed with essentially similar economics and voting rights as an AMC common share. Markets are markets. They act on their own accord, and they are out of our direct day-to-day control. Even so, we continue to be convinced that over time, the availability of APEs will serve their purpose for AMC Entertainment well to help AMC to grow, to deliver, and to raise capital. Taken together, all of the actions that we've taken have allowed AMC Entertainment to successfully navigate our way through the impact of the COVID pandemic.
By contrast, we did so while several of our competitors, both big and small, were forced into bankruptcy protection or some other form of reorganization or liquidation. In 2021 and 2022, we wisely pruned our circuit by adding theaters where it made sense to do so and by aggressively shedding about 7% of our theaters. Indeed, AMC and Odeon permanently closed old or tired buildings with marginal or negative profitability that had reached the end of their productive life cycles. At the same time, though, we also have been able to grow our network by profitably adding attractive theaters, either built from scratch in appealing locations or those picked up from our competitors who may have stumbled.
I should point out that with $900 million of quarter-ending liquidity, our eyes are keenly open to new such opportunity as it may arise, tempered only by my previous comment that preserving ample liquidity and delivering are also high priorities for us. We also have a number of bold ideas about how we can broaden our business, which I will talk about specifically later on this call. That's where we are 2.5 years into our COVID-19 journey. We're not out of the woods yet. While the box office is unmistakably on the rise, it's still falling short of pre-pandemic levels. Adding to all that, inflation is rampant and interest rates are marching upwards. In summary, though, as I said at the beginning of this webcast, we are brimming with confidence.
We know what we're doing, and we will manage AMC with all of our skill and determination as we strive to rise to the challenge. With that, I'm gonna pass the call to Sean Goodman, our CFO. After that, I'll come back to talk about some key developments and answer your questions.
Thank you, Adam, and thank you to everyone for joining us this afternoon. While the third quarter started off strong, August and September were, as we expected, relatively quiet. Nonetheless, the quarter still saw revenue growth of 27%. That number is 32% in constant currency when compared to the third quarter of 2021. Comparing Q3 2022 to the prior's third quarter, the growth in revenue was offset by box office concentration with a resulting increase in film exhibition costs, a reduction in government assistance, and inflationary cost pressures. The result for the quarter was a small consolidated Adjusted EBITDA loss of $12.9 million compared to a $5.3 million loss a year ago. Note that our domestic Adjusted EBITDA in Q3 of $1.2 million was an improvement of $31.3 million compared to the prior year.
While the international business, which enjoyed meaningful government assistance in 2021, experienced an Adjusted EBITDA loss of $14.1 million compared to Adjusted EBITDA of $24.7 million a year ago. Now let's just step back and look at our recovery over the last nine months. Year to date, consolidated Adjusted EBITDA is a positive $32 million compared to an Adjusted EBITDA loss of $450 million for the same period a year ago. That's approaching $500 million of Adjusted EBITDA improvement so far this year. As has consistently been the case in this recovery period, our per-guest performance metrics remain markedly better than pre-pandemic 2019. For Q3 2022, on a consolidated basis, total revenue per patron was $18.21, approximately 21% higher than Q3 of 2019.
This was driven by admissions revenue per patron growth of 12%, food and beverage revenue per patron growth of 30%, and other revenue growth per patron of 48%, all compared to the third quarter of 2019. Taking a closer look in the domestic business, admissions revenue per patron increased by 15% compared to Q3 2019 to $10.90, and our international business achieved a 2% increase to $8.60. Normalizing for the strength of the U.S. dollar compared to 2019, international admissions revenue per patron increased by 10% in constant currency. From a food and beverage perspective, we continue to enjoy exceptionally strong food and beverage revenue per patron. In our domestic markets, food and beverage spend per patron in the third quarter was $7.11.
That's 33% higher than average spend in pre-pandemic Q3 2019. In the international business, food and beverage spend per patron was $4.10. That's nearly 15% higher than Q3 2019 and nearly 24% higher on a constant currency basis. Finally, domestic other revenue per patron increased by 54% and international other revenue per patron increased by 37% and 48% in constant currency. Going forward, we are focused on continuing to drive strength in these key performance metrics through, one, ongoing development of our industry-leading AMC app, website, and loyalty programs. Two, enhancing the guest experience, including our innovative food and beverage offerings. Three, providing the very best possible sight and sound experiences through premium offerings such as IMAX, Dolby Cinema, and PRIME at AMC.
Four, growing revenue through diversification initiatives such as renting out our theaters during off-peak times, marketing, and promotion initiatives. All of the above to be achieved while paying very close attention to our operating efficiency. Note that premium format attendance represented 14.9% of domestic attendance in Q3 2022, compared to 12.6% in the third quarter of 2019. In our international markets, premium format attendance represented 9% compared to 8.4% in the third quarter of 2019. Let's talk about the balance sheet now. We ended the quarter with liquidity of $896 million. This is comprised of $685 million of cash and cash equivalents and $211 million of undrawn credit facilities.
As anticipated and discussed during last quarter's earnings webcast, cash burn this quarter was adversely impacted by the relatively quiet box office in August and September, together with seasonal working capital requirements. Our working capital will naturally come under pressure when a relatively strong quarter is followed by a weaker quarter, and Q3 was no exception. Operating Cash Burn for the quarter represented cash burn before debt servicing costs and before deferred rent payback was approximately $179.2 million. Looking ahead, we expect our cash burn to improve in Q4 with a return to positive operating cash generation. Regarding capital allocation, our priorities remain unchanged. One, maintaining sufficient liquidity to manage through the recovery phase of our business. Two, strengthening our balance sheet by extending maturities, reducing debt, and reducing associated interest costs. Three, investing in our business to enhance the guest experience.
Four, opportunistically pursuing value-enhancing initiatives, including those that lead to diversification of our business. During the third quarter of 2022, we strengthened our balance sheet by repaying approximately $23 million of deferred rent, reducing our deferred rent balance to approximately $196 million. Recall that back in March 2021, this balance was more than $470 million. Over the last 18 months, we've lowered our deferred rent liability by nearly $275 million. In 2022 alone, deferred rent has been reduced by approximately $119 million. We expect to further reduce this deferred rent balance during Q4 by another approximately $50 million. In addition to the reduction in deferred rent, as Adam noted, we have taken further actions during the year to extend debt maturities and reduce our debt balance.
The net result is an approximately $144 million reduction in the principal amount of interest-bearing debt outstanding and an extension of debt maturities through to 2026. All told, if we include the decrease in deferred rent, we've actually reduced our debt liabilities by a total of approximately $263 million so far this year. CapEx, net of landlord contributions, was $44 million in the quarter, and for 2022, we continue to expect CapEx to be in the range of $150 million -$200 million. Actively managing our theater portfolio continues to be a priority. During the third quarter, we added four new theaters and closed eight.
This brings the total number of locations closed since the pandemic began to 106, and the total new locations opened to 49, for a net reduction of 57 locations. The combined 49 new locations continue to substantially outperform 106 closed locations and also outperform our underwriting expectations. We continuously seek opportunities to strengthen the balance sheet while simultaneously weighing the liquidity needs of our ongoing recovery. As the steps that we have taken to date show, we are ready to take action as attractive opportunities arise. With that, I'll hand the call back over to Adam to review some exciting recent announcements and provide an update on our strategic initiatives.
Thank you, Sean. Before we head to your questions, I'd like to debunk a few myths, but also to address what I think is the single most important topic facing the movie theater industry of today, as well as several operational, environmental, and business development concepts directly on the horizon as we continue to innovate at AMC. Since the pandemic first arrived, the press has been filled with three concerns that conventional wisdom has repeatedly insisted would be existential threats to moviegoing in theaters, fear of infection of the coronavirus disease, the rise of streaming services, and the collapsing of exclusive theatrical windows.
On the disease risk, thanks to vaccines, medicines to deal with COVID like Paxlovid, and the fact that so many people have antibody protection because they already experienced the COVID infection, dealing with COVID now has transitioned from pandemic to endemic. It's now more like the seasonal flu, which has been with us for more than a century since it was a killer pandemic in the early 1900s. People will still come down with COVID-19, but it's no longer the commerce-destroying thing that it was back in 2020 and 2021. Life is returning to normal. Risk one dealt with. On the streaming services risk. We have long said that the consumer's voracious appetite for content is big enough for movie theaters and streaming services to coexist harmoniously together.
The results from Spider-Man: No Way Home last winter, from Top Gun: Maverick this past summer, and from the expected big grosses this weekend from Black Panther: Wakanda Forever will again remind us all that movie theaters can thrive even with the consumer having a multitude of streaming services that are choices as well. As opposed to streaming services being a threat, we think they're a potential ally for AMC Entertainment. This month, for example, we're showing our first ever Netflix movie at AMC, the sequel to Knives Out. We recently announced that we will be showing Paramount plus smash hit Yellowstone in our theaters. Last December, we played Amazon's Being the Ricardos, which starred our very own heroine, Nicole Kidman. Amazon also now owns MGM, whose movies appear prominently on our AMC big screens.
Theaters and streamers can thrive simultaneously and can thrive together. Risk two dealt with. As for the risk of collapsing windows. During the height of the pandemic, several studios experimented with going to simultaneous home and theatrical release, or found themselves forced to sell off movie titles that originally were bound for theaters, but which went elsewhere instead. Fortunately for us, studios appear to realize how much boundless money they can make by taking their films to movie theaters first. While there may be an occasional exception here or there, our industry has coalesced around an exclusive 45-day window for theatrical release. Hopefully, that will turn out to be acceptable for studios and acceptable for theaters to both do well. Risk three dealt with. At this point, there is only one topic that should be on the top of all minds and the tip of all tongues.
It's not the coronavirus, it's not streaming, it's not windows. It is this. Movie theater operators need more movies. Because of pandemic-induced production delays, the number of big movie titles being released by the major studios is still down considerably, down 20%-30% versus pre-pandemic norms. We eagerly await more film product to show. I also can report to you today that we are seeing considerable progress on this front. Every few months, I have the opportunity to meet in person with the leaders of all the major studios in Hollywood. Over and over again, I am hearing from them that they are doing all in their power to pick up the pace of the number of movies that they will be releasing theatrically going forward.
That's the major challenge facing the movie industry right now above all else, and there can be optimism that more movie titles rather than fewer movie titles are in our future. Let's turn back to AMC initiatives. There are seven that I'd like to address directly and update you on. One, given the financial struggles of many other companies within our industry, our eyes are wide open to opportunity that may arise for AMC. There is nothing further to report to you today on this subject, but know for sure that we are paying close attention. Two, at our existing theaters, we're doing an enormous amount of business on our premium large format screens. So we're doing all that we can to renovate existing screens and increase the number of IMAX, Dolby Cinema, PRIME, and iSense screens at our AMC and Odeon theaters.
Three, we have started the multi-year installation of laser projectors broadly across thousands of auditoriums in the AMC system. They dramatically brighten and sharpen the images on our screens, thereby greatly improving the moviegoing experience for our guests. Laser projection is also the biggest single green initiative that AMC has ever launched, as they decrease energy consumption and they eliminate the need to dispose of depleted halogen bulbs in landfills. Four, just yesterday, we announced a truly exciting partnership with Zoom, in our view, the world's leading video communications platform, to enter into the multi-billion-dollar meetings market for corporate and other meetings. With this new partnership, we are able to offer meeting organizers the best of both worlds, the spectacular communications technology of Zoom, combined with the comfort, size, scale, and state-of-the-art sight and sound capabilities of AMC's centrally located theaters.
These new Zoom Rooms at AMC are an all-new product that will be available in as many as 17 major cities across the United States starting sometime in 2023. Using a Zoom Room at AMC, meeting and event organizers will be able to bring together decentralized workforces or customer bases in significant numbers of people from different markets, put together at the same time for a cohesive both virtual and in-person meeting experience. It is not a well-known fact, but already right now, AMC does about $20 million a year of meetings business, and that's limited to one movie theater at a time without the cross opportunity to link up through Zoom technology theaters in multiple markets simultaneously. We're optimistic about the growth in revenues that we can generate from the very substantial meetings market. Additionally, we're in the final throes of development of an AMC-branded credit card.
Item five on my list of seven, I am pleased to tell you today that we firmly expect that our new AMC-branded credit card will be launched in the first quarter of 2023, if not sooner. We could not be more excited about the progress we've made in getting to this point. Full details to come when we launch. Six, much also has been written about AMC's coming entry into the multi-billion dollar popcorn market. Our food and beverage and marketing teams have made great strides in product development, in packaging, and in our distribution plans. I fully expect that in partnership with a major national retailer, AMC Perfectly Popcorn will be on the shelves at grocery stores around the United States in the first half of 2023.
Our AMC brand has credible resonance amongst consumers of popcorn, and we can't wait to see the smiles on your faces as you get to see AMC Popcorn in a store near you. Lastly, update number seven, let's briefly tell you about developments recently at Hycroft Mining. Just last week, Hycroft reported the second round of results from its drilling exploration program, the biggest such exploration program on the Hycroft Mining site in northern Nevada in nearly a decade. As was the case when the first round of exploration results were announced, Hycroft uncovered more gold and more silver in them thar hills. Of vital importance, Hycroft has been finding ore deposits that are of significantly higher grade. We made the Hycroft investment recognizing the vast potential of the Hycroft asset if the company were appropriately capitalized. The results to date are extremely encouraging.
I have to admit to being amused how receptive our shareholders were to our investment in Hycroft and by contrast, how astounded Wall Street professionals were to that same announcement. Accordingly, while there's no certainty in life, nothing would give me more pleasure someday well down the road than to report to you the degree to which we can monetize our Hycroft investment, hopefully in eye-popping numbers. In closing, we at AMC very much appreciate the support that we continue to get from our passionate shareholder base.
Let me say personally that it's been a particular honor for me to meet with many of our shareholders one-on-one at the movie screenings I've personally been hosting around the country and as of next week, across the globe, as my 11th such screening will be for the movie of the hour, the much-anticipated Black Panther: Wakanda Forever, at the Odeon Luxe Holloway cinema in London this coming Monday night, November 14th. Sean, let's now move to questions both from our shareholders and from industry analysts.
Let's start with questions from our shareholders. Thank you to them for submitting their questions. I've grouped the questions into three categories. The first category, Adam, is innovations. The first question there is: Where do you see AMC expanding in the future, and what categories of innovations are in the pipeline to enhance the business?
These items were sort of addressed in my earlier prepared remarks. Number one, within our existing theaters, the amount of business that we do in our premium large-format screens is significant. Sometimes on our opening weekends, even though our premium-format screens represent only 10% of our auditoriums, sometimes they're producing as much as 50% of the gross of our films across the network. It makes sense for us to increase the number of premium large-format screens in our system, and that we are doing. We're going to introduce more IMAX screens, more Dolby Cinema screens, more iSense screens, and more PRIME screens. That's happening.
Second, in terms of innovation, again, I mentioned it in my prepared remarks, but I can't say enough how big it is that we're deploying about $250 mi llion of resource to introduce laser projection in about half of our auditoriums. This is a technical term, but the so-called light levels inside a movie theater with laser projection as contrasted with a halogen bulb, it goes up by between 50% and 100%. It means the pictures on the screen are sharper, they're brighter, and therefore the movie-watching experience is that much better. We're always gonna want to create an environment in our theaters that makes a consumer wanna get off their couch at home and come out to a theater.
Brighter, sharper pictures, especially doing so in an environmentally friendly way, is a good way to do that. The third major item of innovation for AMC is what we've been doing away from our theaters. Things like the branded credit card, things like Perfectly Popcorn, things like Zoom Rooms, which is in our theaters but away from movie watching per se. These are all areas where we think AMC will shine going forward. It's not exactly innovation, but, you know, you talked in your remarks about how we closed 100+ marginal theaters and opened 50 new ones, and the 50 new ones make a lot more money than the 100 that we closed.
I do continue to think that as the rest of the industry stumbles financially. We're gonna see increased opportunity to grow our network and take advantage of our various strengths.
Next question here, Adam, is a request for an update on AMC On Demand.
AMC Theatres On Demand, which we introduced several years ago before the pandemic, has always had kinda low usage. Candidly, while it's a good little product, I think our money is better directed elsewhere. The money that we have been investing to grow AMC Theatres On Demand is money I think that instead we ought to be putting into placing a significant number of branded credit cards or taking popcorn to the home popcorn market. I think that as we look to 2023, we're gonna look to either phase out AMC Theatres On Demand or alternatively joint venture with another party to offer that same capability to our guests, but not necessarily to invest and spend to build it up ourselves.
I mean, it takes me to the point that at a time when dollars are precious, because the recovery of the movie industry has taken a considerable time. You and I agree, Sean, that like we need to be laser-focused on making sure that every dollar counts. Cut every dollar of expenditure, increase every possible dollar of revenue, back the best ideas, walk away from the ideas that may be intriguing but may be of lower grade priority.
Two questions here. Thanks, Adam. Two questions here that you did mention in your prepared remarks. People are asking, "When can I expect to see AMC branded popcorn on the shelves? And what is the long-term potential of the partnership with Zoom?" Maybe you wanna add a little bit more color.
Sure. You know, Sean and I have been at many a taste testing of one recipe after another for our ready-to-eat popcorn and our microwavable popcorn that's gonna hit shelves in the first half of 2023. We've seen the packaging, which I think is beautiful. We've had numerous conversations with major national retailers and are getting really favorable response. People want to carry this product on their shelves. You're gonna see it in the first half of 2023. I'm supposed to caveat everything 'cause you never know what can go wrong, but my firm expectations is on the shelves first half of the year. As for Zoom, I was in the hotel industry for a good chunk of my career.
The meetings market is a multi-billion-dollar market, and for any of you who've gone to a hotel for a meeting and sat in their ballrooms or in their breakout rooms, their chairs are not comfortable. When you compare the comfort of an AMC signature recliner seat to what you might get at a hotel, we beat them. Traditionally, we've only been offered to offer meetings at a theater as a standalone entity. Now, thanks to our partnership with Zoom, we're gonna be able to link up theaters in city after city so that people who wanna have a nationwide meeting, instead of having to get everyone to fly on a plane and go to a convention city, can do so simultaneously at our theaters. I saw some reaction to the press announcement yesterday about Zoom. Why would people go to a theater?
Why don't they just sign in on Zoom? Cause like Zoom's an amazing thing. Now, as you know, we like, we run our whole company on Zoom for like 2.5 years now. But the answer is when you've got 50 or 100 people in a city, and you've got those 50 or 100 people in 12 different cities, it's not the same thing to have 500 or 1,000 little mini pictures on a Zoom screen where everybody is alone, either at their desks in the office or maybe at home or somewhere else, signing into Zoom one by one.
This gives us the best of both worlds because people can still gather in a medium-sized group in a city and be hooked up through really sophisticated Zoom technology in another city 'cause we can hook up multiple cities with no problem. I gotta tell you, this idea was the idea of the CEO of Zoom, who literally called us up and wanted to share with us his idea how Zoom could make AMC Theatres a compelling entry into the meetings market. The second we heard the idea, we were all for it, and we think the financial opportunity is big. Remember, we already do $20 million a year of meetings business. That's without the ability to link city after city at the same time.
Don't wanna give a specific goal, but hopefully the revenue opportunity is large.
Thanks, Adam. A question about our operations, especially, looking into 2023 in the current environment. The question is, we're all seeing the impact of inflation on our daily lives. How is this impacting AMC?
For those of you who are under the age of 35 on this call, you probably don't even remember what inflation is. For those of us who are old enough to remember Jimmy Carter when he was President of the United States, we lived through inflationary periods, and they stress the system because costs rise. If you wanna know how much they raise costs, just look at what the national inflation rate is. That tends to be the cost that everything goes up in the country. In terms of a starting point, when you hear inflation statistics being reported nationally, you should assume that AMC's costs are gonna go up by a similar amount.
Having said that, what is very unusual in AMC's case is that, because the box office is on a path of recovery, the volumes that we're seeing in our theaters, the volumes of customers that we're serving, is rising dramatically. As a result, we pick up operating efficiencies and increased operating productivity because the number of guests coming into our theaters is coming down, essentially because we're spreading our fixed costs over more people. We're in the enviable circumstance that we've got a mitigating offset to inflation. The increasing productivity that comes from being able to spread our fixed costs over a larger customer base, is offsetting a big chunk of the inflationary costs that would otherwise not be mitigated, without this increasing volume of customers, for productivity gains.
In the next section here is a couple of questions about the stock. The first one here is, please explain why you believe the stock has gone down and why management has been generally silent on this matter.
This is the biggest question of the day, isn't it? Let me start by saying I am a major AMC shareholder. It is an enormous part of my net worth, and I venture to guess that I personally own more shares than anyone listening on this call today. I assure you that just as you watch the share price, I watch the share price. Having said that, in terms of decline, there are a lot of factors. These aren't the only reasons why the share price has fallen. Look around at what's happened in the United States, and for that matter, the planet, over the past several months. There's a war going on in Ukraine, which is not good for global stability. It's caused a surge in energy prices.
It's caused dramatic inflation, which in turn has caused the Fed to commit to raising interest rates. These are all factors that have affected the market overall. In the case of the movie theater industry, in early September, Cineworld also declared for Chapter 11 bankruptcy protection, which also created a certain amount of agita around the movie theater industry and our share price. It also does depend on what your time frame is, of course, because while the share price is lower than it was in, let's say, June of 2021, it's still a lot more than it was in January of 2021. What I just said is about all you'll ever hear me say about our share price because you asked, so, like, why is management silent on this subject?
There are things called securities laws in the United States. If you're the CEO of a public company, it is much better for you to be talking about the state of the business than the state of the share price. I know this is frustrating to some of you who would like me to comment all the time. Prudence says that our focus and our public focus should be what we're doing to bring back the health of the business over the short, medium, and long term, and that's what we should be talking about. That in fact is what we have been talking about. We said earlier in the year that you should never interpret silence as inaction or indifference. We are aware this subject is very important to you. To all of us as significant shareholders of the company.
Having said that, our focus, and our public commentary is usually constrained to what's in the best interest of the business, what's the future of the business, what are the risks inherent in the business, and that's what drives our public commentary.
Thanks, Adam. There's a follow-up here, which is asking, can we reverse split the APE shares?
It's something that's legal to do. Interestingly, an action like that would require a shareholder vote, which should remind us all, since there are many shareholders on this call, this is your company. Day-to-day, we run it. We do our best on your behalf. On major topics of governance, a shareholder vote is required, and that would be one, for example, that we would have to take out to the shareholders for their opinion and their consideration, and ultimately, their decision.
Great. A question on disclosure here. Someone is asking, "Will you provide information on the number of shareholders and the number of shares that have been directly registered with the transfer agent, Computershare?
For those of you who don't know what direct registration of shares is, our transfer agent is Computershare, and most of you hold stock through brokerages. Some of you own stock that's directly registered with the company through our transfer agent. A primary benefit, I suppose, for you when you register your shares directly with the transfer agent is that transfer agents do not allow for shorting of shares, whereas most brokerage firms do. What we've heard from some of you is that to make sure that your shares cannot be shorted, you want to register them directly with the company and a transfer agent, which is your right as an owner of a public security.
We haven't given any guidance to any of you to do that or not do that. It's entirely your call. I should point out it's a small number of people who have done it. As best I can tell, it's around 15,000 or so of our millions of shareholders who've decided to directly register shares. I think they've registered in the neighborhood of 10 million shares or APEs with our registrar. We've decided that this is a number that is one of these numbers that we should publicly release. When we file our 10-Q for the third quarter, we're going to announce in the 10-Q what the number of directly registered shares is.
Makes sense. The last question that I have here, and then we can go on to questions from analysts is, do you have any comments regarding the acquisition of Twitter by Elon Musk?
That's quite a question. The funniest comment that I heard on Twitter in the past two years was, you know, the two great meme stocks are AMC and GameStop, and then there's Musk. The guy who runs AMC is Adam Aron, that begins with an A, and Ryan Cohen, that begins with a C, runs GameStop, and of course there's Elon Musk. Somebody strung together that AMC was Aron, Musk, and Cohen, which is quite something to behold. Mr. Musk is just taking control of Twitter. I have no comment really one way or another whether he will do a fabulous job owning and running Twitter or not.
What I can tell you is that the asset that he bought, meaning Twitter, this is the most incredible communications tool that I've ever seen. If you just look back over the last, what is it now? 1.5 years that I've actively been tweeting with our shareholder base, we've been able to convey hundreds and hundreds of important messages to you all about what's going on in our company. I've been able to read literally hundreds of thousands of inbound comments back to us. I spend about an hour a day on Twitter, mostly reading what you have to say, and I learn so much about what's on your mind.
Of course, Twitter also gives us the opportunity not only to learn by listening from you, but also to share information with you and share news with you. I continue to be astounded by how impactful and powerful Twitter is as a communications vehicle. I hope that Elon Musk does good things with Twitter because it's a very valuable national asset if it's run well. With that, I guess, Scott, the operator, can you see if there are any questions from our industry analysts who are on the call?
Absolutely. Thank you. If you'd like to register a question, please press the one followed by the four on your telephone. You will hear a three-tone prompt to acknowledge your request. If your question has been answered and you would like to withdraw your registration, please press the one followed by the three. If you are using a speakerphone, please lift your handset before entering your request. Once again, that's one-four to register for a question. One brief moment for the first question. We have a question from the line of James Goss with Barrington Research. Please go ahead. Your line's open.
Good afternoon, Adam.
Hello, James.
How are you doing?
We're all good today. How are you doing?
I thought I'd ask you about the Stubs A-List. It's been sort of not relevant for the past couple of years as the content and everything has been under pressure. I wonder if you might talk about whether you have a plan to revive it, make it more relevant as the-
Mm-hmm
The amount and mix of content improves and where it might stand right now. What is your starting point?
Sure. The A-List was. You know, for those of you who aren't totally familiar, A-List is our subscription program, up to three movies a week for a fixed price of between $20 and $25 a month, basically. It instantly took off. It popped up to as much as 15% of our total moviegoing in the United States. We have a similar program, by the way, in London called Limitless at our Odeon theaters in the U.K. and our UCI theaters in Germany. In Europe, the Limitless program has grown considerably.
Back in the height of the pandemic when our theaters were all closed, obviously, there was nobody paying us $25 a month to go see three movies a week because all our theaters were shut. We put AMC A-List on pause in the United States and cranked it up last year. The good news is we're already back to between 600,000 and 700,000 A-Listers, up from zero during the pause. We're seeing, depending on the title, you know, 10%-15% of our total moviegoing is coming from A-List members. The A-List numbers have continued to rise from the second that we unpaused the program.
If you look at A-Listers as a percentage of our total moviegoers, it's kind of on par with where it was prior to the shutdown. We intend to be very aggressive going forward to continue to attract people to the program.
Okay. The one other thing.
So-
I might ask.
Yeah, sure. Go ahead, Jim.
Thanks. Now I was thinking with alternative content, you've had an opportunity to try a number of things for the same reason the theaters have been under pressure. I'm wondering if there are any things you've shown on your screens that you think have some promise to be more than just better than nothing else.
Yes is the answer to your question. We had good success with the concerts that we showed, whether they were live or taped. We had good success with WWE and UFC events. We've experimented with some professional sporting events. For all those things, the concerts, the various sporting events, we need to secure what are called rights, broadcast rights from the leagues or the owner of the IP. In all cases, we were encouraged by the results, and so we will be on a path to try to negotiate rights with the various IP holders so that we can grow our alternative content going forward.
All right. Thanks a lot.
Thank you, James. Operator, am I correct, Scott, that we're done with questions for the day?
Correct. There are no further questions at this time.
Great. To all of you who joined us today, thank you. I think I'd like to close the call with two thoughts. I said in my opening remarks that we're brimming with confidence as we look at the recovery path that AMC is on. That's the first comment. The second comment is continuing to be encouraged and brimming with confidence. Black Panther: Wakanda Forever. It's gonna be a big weekend in the movie theater business, and we're excited to be talking to you today just ahead of this new very big movie being released theatrically. Thank you for joining us. We'll look forward to talking to you again next quarter.
That concludes the call for today. We thank you for your participation. Please disconnect your-