AMC Entertainment Reports Loss in Q2 Due to Weak Movie Lineup

AMC Entertainment Holdings reported a loss in the second quarter, a sharp contrast to the profit seen in the same period last year. This downturn is attributed to the continued impact of the dual Hollywood strikes in 2023, which led to fewer major theatrical releases.

The U.S. film industry experienced significant disruptions in 2023 due to simultaneous writers’ and actors’ strikes. These strikes brought the creation and production of new content to a halt and caused delays in major releases, including the highly anticipated “Dune” sequel.

As a response to the disruptions, movie theater operators like AMC had to diversify their offerings, incorporating alternative content like sports events and concerts into their schedules.

For the quarter ending June 30, AMC announced a net loss of $32.8 million, or 10 cents per share. This contrasts starkly with a net profit of $8.6 million, or 6 cents per share, from the previous year. The total revenue for the quarter fell by about 24%, reaching $1.03 billion, which aligned with analysts’ expectations according to LSEG data.

Looking forward, AMC, along with other cinema chains such as Cineworld and Cinemark, are expected to see some relief in the current quarter, thanks to the overwhelming success of Marvel’s action marvel “Deadpool & Wolverine,” which made a significant impact at the box office over the weekend.

The R-rated film, featuring Ryan Reynolds and Hugh Jackman, garnered $205 million from U.S. and Canadian ticket sales. This performance solidified its standing as the biggest domestic opening of the year.

Last month, AMC announced an agreement with creditors, successfully extending the maturity of up to $2.45 billion of its debt. This move helped to stabilize investor confidence.

As part of this strategic transaction, AMC will transfer ownership of 175 theaters, including leases, property, and associated assets and rights, to a newly established subsidiary named Muvico.

Source: Reuters