AMC posts a larger-than-expected loss due to delayed Hollywood releases

Written by Harshita Mary Varghese

(Reuters) – AMC Entertainment on Wednesday reported a wider-than-expected quarterly loss due to higher distribution costs for Taylor Swift and Beyoncé’s concert films and a lack of big releases from Hollywood studios after the double strike.

Shares of the Leawood, Kansas-based company fell 8.1% in trading after the bell.

Several big films, including the sequel to the sci-fi saga “Dune,” were delayed due to strikes that halted much U.S. film production until November, leaving little left in the fourth quarter to follow up on the success of “Barbie” and “Oppenheimer.”

That forced AMC to focus on alternative content such as “Taylor Swift: The Eras Tour” and “Renaissance: A Film by Beyonce” concert films to attract people to its theaters.

Total operating costs and expenses rose more than 3% to $1.25 billion in the fourth quarter.

AMC reported a loss of 83 cents per share during the quarter, wider than analysts’ average estimate of 70 cents, according to LSEG data.

“Debilitating strikes” will temporarily challenge AMC’s earnings in 2024, CEO Adam Aron said on the post-earnings call.

Media company Warner Bros Discovery reported a larger-than-expected quarterly loss last week, citing a weak advertising market and the impact of strikes on content creation.

This quarter, AMC may benefit from the March releases of “Dune 2” and “Kung Fu Panda 4,” both of which are expected to be huge hits.

It had revenue of $1.10 billion for the quarter, compared to analyst estimates of $1.05 billion.

(Reporting by Harshita Mary Varghese; Editing by Shailesh Kuber and Maju Samuel)