AMC Reports Larger Than Anticipated Loss Due to Postponed Hollywood Film Releases

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.

AMC Reports Larger Than Anticipated Loss Due to Postponed Hollywood Film Releases

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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Sachin Chouhan is an avid entertainment enthusiast and dedicated follower of celebrity and entertainment news. He has always had a passion for the latest happenings in the world of entertainment and has made it his mission to stay up-to-date on all the latest trends, news, and gossip. With years of experience following the entertainment industry, Sachin has developed a keen eye for the latest celebrity fashion trends, music releases, movie reviews, and red-carpet events. His in-depth knowledge and expertise have made him a trusted source for entertainment news and celebrity updates. Contact us: admin@bollywoodfever.co.in

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