AMC Reports Losses in Second Quarter Earnings
- AMC's revenue decreased by more than 23% in the second quarter.
- The company reported a net loss compared to the same period last year.
- AMC's financial performance in Q2 was disappointing.
AMC Entertainment has issued a warning to investors regarding a significant decline in key financial metrics for the second quarter of 2024, resulting in an almost 8% drop in its stock price during trading on Wednesday. The company attributed this downturn to the impact of last year's actors and writers strike, which led to a notable slowdown in theatrical releases. Preliminary results indicate a revenue decrease of over 23%, totaling $1.03 billion for the quarter ending June 30. Adam Aron, AMC's chairman and CEO, emphasized that the prolonged strikes severely limited the number of films released in early 2024, contributing to the disappointing results compared to the same period last year. Despite these challenges, the theatrical industry has recently seen a resurgence, with audiences returning for popular films such as Disney and Pixar's "Inside Out 2" and Universal's "Despicable Me 4." This revival suggests a potential recovery for moviegoing trends. Looking ahead, AMC is optimistic about upcoming releases, including the highly anticipated Disney and Marvel collaboration featuring "Deadpool and Wolverine," expected to break box office records. Other major films set to debut in the latter part of the year include "Joker: Folie a Deux," "Gladiator II," and "Moana 2," among others, which could further bolster the industry. Aron expressed confidence that movie revenues will strengthen in the second half of 2024 and into 2025 and 2026, which he believes will lead to improved adjusted EBITDA for AMC. The company remains hopeful for a brighter financial future as the industry rebounds.