AMC Entertainment Holdings Inc's shares fell about 9% on Wednesday after the company's results underscored fears that theater-going would not return to pre-pandemic levels anytime soon as rising cost-of-living bites.
An AMC theatre is pictured amid the coronavirus disease pandemic in the Manhattan borough of New York City, New York, U.S., January 27, 2021. REUTERS/Carlo Allegri/File Photoshares fell about 9% on Wednesday after the company's results underscored fears that theater-going would not return to pre-pandemic levels anytime soon as rising cost-of-living bites.
The world's largest cinema chain operator saw a 17% fall in footfall in its theaters in the fourth quarter, despite the release of big-ticket films such as "Avatar: The Way of Water". Revenue fell 15.4% in the quarter. "This is AMC's fourteenth consecutive quarterly loss and the market is punishing the shares for that fact," Hargreaves Lansdown analyst Sophie Lund-Yates said.
While more people are returning to the theaters, Hollywood has been releasing fewer movies "of late", AMC Chief Executive Adam Aron said at a post-earnings call on Tuesday.In the United States and Canada, box office collection was above $11 billion in 2019, but since the COVID-19 pandemic, the numbers have fallen drastically, with 2022 box office numbers coming in at $7.4 billion, the company said.
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