AMC Entertainment swings to loss in the second-quarter hurt by weak movie lineup
4:52 pm Friday, August 02nd, 2024
(Reuters) – AMC Entertainment Holdings posted a loss for the second quarter compared to a profit in the same period last year hurt by the lingering impact of last year’s dual Hollywood strikes, which led to a limited number of major theatrical releases.
The U.S. film industry faced significant disruption in 2023 due to parallel writers’ and actors’ strikes, bringing the writing and production of new content to a standstill and delaying major releases such as the “Dune” sequel.
The widespread disruption forced movie theater owners like AMC to diversify and rely on alternative content such as sports and concerts.
The world’s largest theater chain reported a net loss of $32.8 million, or 10 cents per share, for the quarter ended June 30, compared to a profit of $8.6 million, or 6 cents per share, a year earlier.
The company reported total revenue for the quarter down about 24% to $1.03 billion in line with analysts’ estimates, according to LSEG data.
AMC, along with other cinema chains like Cineworld and Cinemark, are however expected to get some relief in the current quarter from the runaway success of Marvel’s action-packed “Deadpool & Wolverine,” which stormed the box office over the weekend.
The Ryan Reynolds and Hugh Jackman R-rated vehicle raked in $205 million in U.S. and Canadian ticket sales, solidifying its position as the biggest domestic opening of the year.
AMC last month announced an agreement with creditors, successfully extending the maturity of up to $2.45 billion of its debt, boosting investor confidence.
As part of the strategic transaction, AMC will transfer ownership of 175 theaters, including leases, property, and associated assets and rights, to a newly established subsidiary named Muvico.
(Reporting by Akash Sriram in Bengaluru; Editing by Tasim Zahid)
