The largest cinema operator, AMC Entertainment, suffered a loss of 10 cents per share and saw second-quarter revenue fall 24% due to the strike in its cinema pipeline.
AMC shares rise on APE conversion ruling, box office
While shaky, the financials matched Wall Street analysts’ estimates, and AMC shares gained modestly in after-hours trading. The loss compared with a profit of 6 cents per share in the year-ago period, while revenue fell to $1.03 billion from $1.348 billion in the 2023 quarter.
CEO Adam Aron, the world’s foremost business optimist, said the dynamic shifts in the market made him optimistic about the second half of 2024. After a worryingly quiet spring and major disappointments like Fall Guy in what normally kicks off summer in early May, the triumph of Inside Out 2 sparked a revival that has continued into the current heyday of Deadpool and Wolverine.
“As expected, the second quarter started slowly, with box office negatively impacted by the 2023 Hollywood writers and actors strikes. However, the quarter ended with incredible strength, driven by the success of Disney’s Inside Out 2,” Aron said in the earnings report. The company “saw a notable contrast between starting the quarter with a lack of film releases and ending the quarter with a record-breaking film that thrilled audiences in our theaters. That difference between AMC’s performance at the beginning of the quarter and our performance at the end of the quarter was like we were two completely different companies, surrounded by two completely different industry dynamics.”
