Written by Harshita Mary Varghese
(Reuters) – Theater chain AMC Entertainment on Wednesday reported a bigger-than-expected quarterly loss due to higher distribution costs for Taylor Swift and Beyoncé concert films and the lack of major releases from Hollywood studios after the twin strikes. was accounted for.
Shares of the Leawood, Kansas-based company fell 8.1% in after-bell trading.
Several big titles, including the second part of the sci-fi blockbuster “Dune,” have been postponed due to the strike, halting most U.S. film production until November, and the fourth installment following the success of “Barbie” and “Oppenheimer.” There wasn’t much left in the quarter.
This has forced AMC to focus on alternative content, such as “Taylor Swift: The Elus Tour” and “Renaissance: A Beyoncé Movie” concert film, to attract people to theaters.
Total operating costs and expenses increased more than 3% to $1.25 billion in the fourth quarter.
AMC reported a loss of 83 cents per share in the quarter, beating analysts’ average estimate of 70 cents, according to LSEG data.
Chief Executive Officer Adam Aron said in a post-earnings conference call that the “debilitating strike” will temporarily hurt AMC’s earnings in 2024.
Media conglomerate Warner Bros. Discovery last week reported a bigger-than-expected quarterly loss, citing a weak advertising market and the impact of strikes on content production.
AMC could benefit this quarter from the March release of the Dune sequel and Kung Fu Panda 4, both of which are expected to be hits.
Revenue for the quarter was $1.15 billion, compared to analysts’ expectations of $1.05 billion.
(Reporting by Harshita Mary Varghese; Editing by Shailesh Kuber and Maju Samuel)
