AMC posts bigger-than-expected loss on delayed Hollywood releases
By Harshita Mary Varghese
(Reuters) -Theater chain AMC Entertainment on Wednesday posted a bigger-than-expected quarterly loss on higher distribution costs for Taylor Swift and Beyonce concert movies and lack of big releases from Hollywood studios after twin strikes.
Shares of the Leawood, Kansas-based company fell 8.1% in trading after the bell.
Several big titles including the second part of sci-fi epic "Dune" were delayed by strikes that halted much of U.S. film production until November, leaving little in the fourth quarter to follow the success of "Barbie" and "Oppenheimer".
That forced AMC to focus on alternative content such as the "Taylor Swift: The Eras Tour" and "Renaissance: A Film by Beyonce" concert films to attract people to its 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 for the quarter, bigger than the average analyst estimate of 70 cents, according to LSEG data.
CEO Adam Aron said on a post-earnings call the "debilitating strikes" will temporarily challenge AMC's earnings in 2024.
Media conglomerate Warner Bros Discovery reported a bigger-than-expected quarterly loss last week, citing weak advertising market and the impact of the strikes on content creation.
AMC may benefit in the current quarter from the March releases of the "Dune" sequel and the fourth edition of "Kung Fu Panda", both of which are expected to be hits.
It posted revenue of $1.10 billion for the quarter, compared with analysts' estimates of $1.05 billion.
(Reporting by Harshita Mary Varghese; Editing by Shailesh Kuber and Maju Samuel)
