AMC Tumbles as Hollywood Strikes, Higher Expenses Hit Results

An AMC theater is pictured in Times Square in the Manhattan borough of New York City, New York, US, June 2, 2021. REUTERS/Carlo Allegri/File Photo
An AMC theater is pictured in Times Square in the Manhattan borough of New York City, New York, US, June 2, 2021. REUTERS/Carlo Allegri/File Photo
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AMC Tumbles as Hollywood Strikes, Higher Expenses Hit Results

An AMC theater is pictured in Times Square in the Manhattan borough of New York City, New York, US, June 2, 2021. REUTERS/Carlo Allegri/File Photo
An AMC theater is pictured in Times Square in the Manhattan borough of New York City, New York, US, June 2, 2021. REUTERS/Carlo Allegri/File Photo

AMC Entertainment slumped nearly 8% on Thursday as the movie industry continued to reel from the impact of twin Hollywood strikes, driving the theater chain to post a larger-than-expected quarterly loss.
The writers and actors' strikes have crippled much of the industry, leading to fewer releases following the blockbuster summer successes of "Barbie" and "Oppenheimer."
The delay in the release of the "Dune" sequel likely contributed to the box-office weakness last year.
AMC reported a loss of 83 cents per share for the fourth quarter, while analysts were expecting a loss of 70 cents, according to LSEG data. The impact of the strikes is expected to linger this year and weigh on earnings in 2024.
Just as adjusted core earnings in the summer of 2023 were returning to more acceptable pre-COVID levels, the movie industry was paralyzed by debilitating strikes, temporarily challenging AMC earnings in 2024, CEO Adam Aron said on a post-earnings call.
The strikes and the resulting lack of new content forced studios to try other means such as concert-based movies to pull in revenue.
"AMC's deals with Beyoncé and Taylor Swift went a long way in staunching the wounds and have opened up a lucrative revenue stream," said Danni Hewson, head of financial analysis at AJ Bell.
However, higher distribution costs for Swift and Beyonce's concert movies were a drag on its earnings, Reuters reported.
Domestic box-office collection was down 35% for the fourth quarter, compared with pre-pandemic levels in 2019, and 45% for the first two months of the year, compared with 2020 levels.
For 2024, "the impact from the 6-month Hollywood work stoppage is likely to cause the overall domestic box office to decrease 7%," Roth MKM analyst Eric Handler said.



Taylor Swift Wins Recording Artist of the Year Crown for Fifth Time

Taylor Swift attends an in conversation with Taylor Swift event at the Toronto International Film Festival on Sept. 9, 2022. (AP)
Taylor Swift attends an in conversation with Taylor Swift event at the Toronto International Film Festival on Sept. 9, 2022. (AP)
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Taylor Swift Wins Recording Artist of the Year Crown for Fifth Time

Taylor Swift attends an in conversation with Taylor Swift event at the Toronto International Film Festival on Sept. 9, 2022. (AP)
Taylor Swift attends an in conversation with Taylor Swift event at the Toronto International Film Festival on Sept. 9, 2022. (AP)

Taylor Swift has been named global recording artist of the year for 2024 by the IFPI, the fifth time she has won the honor from the organization that represents the recorded music industry.

The megastar's "The Tortured Poets Department" record also topped four IFPI charts - global album, global vinyl album, global streaming album and global album sales, the IFPI said in a statement on Tuesday.

It had a strong lead on the 2024 global album sales chart, which calculates physical purchases and full album downloads, with 5.6 million units. K-pop group ENHYPEN's "Romance: Untold" took the second spot with 3.4 million units sold.

Swift's record-breaking "Eras" tour, the first to surpass $1 billion in revenue, also boosted interest in her past records, with several appearing in the 2024 vinyl album and streaming album charts, the IFPI said.

"This has been a huge year for Taylor, and it has been incredible to see the extent to which fans all over the world are connecting with her superb catalogue of music," IFPI Chief Executive Victoria Oakley said.

Swift was first named IFPI global recording artist of the year in 2014 and then in 2019, 2022 and 2023, the most times for any performer since the award was introduced 12 years ago.

Presented to whoever tops the IFPI global artist chart, the prize is calculated by looking at an artist's or group's worldwide sales for streaming, download and physical music formats during the calendar year and covers their whole body of work, according to the organization.

Canadian rapper Drake and K-pop group SEVENTEEN came in second and third respectively on that chart for 2024.