AMC Reports Larger Than Anticipated Loss Due to Postponed Hollywood Film Releases
AMC Reports Larger Than Anticipated Loss Due to Postponed Hollywood Film Releases
Bollywoodfever, February 29: On Wednesday, AMC Entertainment (AMC.N) reported a larger quarterly loss than anticipated, attributing it to increased distribution costs for concert movies featuring Taylor Swift and Beyonce, along with a shortage of major Hollywood studio releases due to dual strikes.
The shares of the company, headquartered in Leawood, Kansas, dropped 8.1% in post-market trading.
The delay of several major movies, including “Dune” Part Two, due to strikes that paused much of the film production in the U.S. until November, left AMC with few options for blockbuster content following the successes of “Barbie” and “Oppenheimer” in the fourth quarter.
This situation led AMC to pivot towards showcasing alternative content like “Taylor Swift: The Eras Tour” and “Renaissance: A Film by Beyonce” in its cinemas.
The company saw a more than 3% rise in total operating costs and expenses, reaching $1.25 billion for the fourth quarter. AMC’s loss stood at 83 cents per share for the quarter, surpassing the analyst consensus forecast of a 70-cent loss, based on LSEG data.
During a post-earnings call, CEO Adam Aron highlighted that the “debilitating strikes” would pose a temporary challenge to AMC’s financial performance in 2024.
Similarly, Warner Bros Discovery (WBD.O) also reported a larger-than-expected quarterly loss recently, pointing to a weak advertising market and strike-related disruptions in content production as primary causes.
Looking ahead, AMC might see a rebound in the current quarter with the anticipated success of March releases like the “Dune” sequel and “Kung Fu Panda 4”. The company reported revenue of $1.10 billion for the quarter, exceeding the $1.05 billion forecast by analysts.
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