Big Tech defends free speech amid government pressure
AMC Entertainment Holdings reported a loss for the second quarter of 2023, reversing its profit from the same period last year. The loss was attributed to a weak movie lineup, largely due to the impact of the 2023 Hollywood writers' and actors' strikes, which brought content creation to a halt and delayed major releases like the "Dune" sequel.
The strikes significantly disrupted the U.S. film industry, leading to fewer theatrical releases and forcing theater chains like AMC to diversify their offerings with alternative content such as sports events and concerts.
For the quarter ending June 30, AMC posted a net loss of $32.8 million, or 10 cents per share, compared to a net profit of $8.6 million, or 6 cents per share, a year earlier. The company's total revenue for the quarter declined by about 24% to $1.03 billion, aligning with analysts' expectations, according to LSEG data.
Despite these challenges, AMC and other cinema chains like Cineworld and Cinemark are expected to see some relief in the current quarter, thanks to the blockbuster success of "Deadpool & Wolverine." The Marvel film, starring Ryan Reynolds and Hugh Jackman, earned $205 million in U.S. and Canadian ticket sales over its opening weekend, marking the biggest domestic debut of the year.
In a bid to strengthen its financial position, AMC recently announced an agreement with creditors to extend the maturity of up to $2.45 billion of its debt, boosting investor confidence. As part of this strategic move, AMC will transfer ownership of 175 theaters, including leases, property, and associated assets, to a newly established subsidiary named Muvico.
AMC, along with other cinema chains such as Cineworld and Cinemark, are however expected to get some relief in the current quarter from the runaway success of Marvel’s action-packed Deadpool & Wolverine, which stormed the box office over the weekend.
