AMC Entertainment blamed Hollywood for new profit warning

AMC Entertainment (NYSE:AMC) told investors - and memetraders - that it expects to report a net loss of $32.8 million for its second quarter of 2024, which would mark a reverse from the $8.6 million profit for the same period last year.

On 2 August, the company will release its actual results for the quarter.

The cinema operator blamed Hollywood – well, more accurately, the lighter movie release slate this year, which is a downstream impact of last year’s writers and actors' strikes.

It said that revenue for the quarter is projected to fall 24% to $1.03 billion.

This softness was seen in April and May, though AMC chief executive Adam Aron said there had been a rebound in June and daily revenues increased significantly.

“As we accurately predicted and previously disclosed, the prolonged actors and writers strikes of 2023 severely reduced the number of movies being released theatrically in the early months of 2024,” Adam Aron said.

“This explains the weakness in our preliminary Q2 2024 results …  the lay observer might easily miss the incredibly good news that transpired within the second quarter.”

He added: “Finally, moviegoing in theatres appears again to be on an upwards trajectory … So far, the impressive box office performance has continued into July.

“And AMC continues to be confident that industry-wide movie revenues for the second half of 2024, and into 2025 and 2026 will continue to show increasing strength.”

AMC’s retail investor followers may, or may not, see it Aron’s way – but the market as whole certainly didn’t on Wednesday.

In New York, AMC stock was down 38 cents or 7.6% changing hands at $4.70.