AMC reported a quarterly revenue decline of 15% for the fourth quarter of 2022, compared with results from Q4 2021. This reflects a difficult stretch for exhibitors at the end of last year, with the box office held back by a series of underperforming titles including DC’s BLACK ADAM, Universal’s HALLOWEEN KILLS, and Disney’s STRANGE WORLD. Even Marvel’s widely-anticipated sequel BLACK PANTHER: WAKANDA FOREVER produced a significantly lower domestic box office ($453M) than the 2018 original BLACK PANTHER ($700M).
On the positive side, a series of mid-budget titles such as SMILE, THE MENU, and VIOLENT NIGHT enjoyed successful runs during the quarter, but not at a level to make up for lower results from the major blockbusters.
The soft Q4 came at an unfortunate moment for AMC, which is weighed down by billions of dollars in debt. In part, AMC’s share price is still being lifted by an army of retail investors that bought into the stock during the “Reddit Rally” in early 2021.
CEO Adam Aron has tried to excite investor interest by pursuing unique strategies such as offering theatre rentals to hold Zoom meetings, investing in gold mines and cryptocurrencies, and, most recently, partnering with Walmart to sell AMC branded popcorn at the retailer’s 2,600 U.S. stores. AMC stockholders are encouraged to vote YES next week on a proposed 10:1 reverse stock split, which would lift the company’s share price and provide additional flexibility in financing its debts.
The movie release calendar has also improved over the past several months, including record-breaking results from AVATAR: THE WAY OF WATER, PUSS IN BOOTS: THE LAST WISH, and M3GAN. However, one good quarter alone is insufficient to alter AMC’s outlook.
See also: AMC to sell movie theater popcorn exclusively at Walmart in the latest attempt to make up for the decline in customers (Business Insider)