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AMC Entertainment’s chief executive officer credited pop stars Taylor Swift and Beyoncé with movie theater operators reporting higher sales and bottom line profits in the fourth quarter.
“Literally all of AMC’s revenue growth and AMC’s adjusted EBITDA growth is due to the results we have shown,” CEO Adam Aaron said. [Swift and Beyoncé’s] Two concert films will be shown in theaters in the United States and abroad. ”
The movie theater operator announced fourth-quarter revenue of $1.1 billion, an 11.5% increase from the same period last year. Meanwhile, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $42.5 million, an increase of 193% compared to the same three-month period in 2022.
Popcorn and AMC Theaters logo. (Jakub Porzycki/NurPhoto via Getty Images / Getty Images)
“We are with Taylor Swift. beyonce knowles carter There are no restrictions,” Aaron said.
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Swift released her.”Taylor Swift | The Elus TourThen, about seven weeks later, Beyoncé’s “Renaissance: A Beyoncé Movie” officially debuted.
(LR) Beyoncé Knowles-Carter and Taylor Swift at the “Taylor Swift: The Elus Tour” Concert Movie World Premiere held at AMC The Grove 14 in Los Angeles, California on October 11, 2023 Attendance. (John Shearer/Getty Images for TAS/Getty Images)
The two concert films didn’t just boost the company’s fourth-quarter revenue and adjusted EBITDA. Aaron said these effects have “significantly increased AMC’s U.S. market share,” which is “more than 50% higher than our typical market share.”
AMC reported that its quarterly net loss narrowed to $182 million.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| AMC | AMC Entertainment | 4.29 | -0.71 | -14.21% |
“These two movies alone accounted for a full nine-tenth of the domestic industry’s total box office revenue in the fourth quarter, so the movie theater industry as a whole is also tied up with Swift and Beyoncé,” he told analysts and investors. “I am benefiting from this,” he said.
Tickets for Taylor Swift’s glittering US tour were nearly impossible to get. After the tour went on sale, it broke Ticketmaster records. (Kevin Winter/TAS23/TAS Copyright Management Getty Images/Getty Images)
Swift’s “Ellas Tour” film grossed approximately $261.66 million worldwide, generating more ticket sales than any other concert film in history. According to Box Office Mojo, “Renaissance: The Beyoncé Movie” grossed $43.99 million worldwide.
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These two films marked AMC’s first foray into serving as a distributor rather than just a theater company, and AMC has signaled that it will continue to do so.
“Our phones have been ringing and we can confirm today that other people are asking for AMC to distribute films with more world-class music artists towards late 2024 or late 2025. We’re still in constant contact,” Aaron said.
The CEO of AMC, which had annual revenue of $4.8 billion and a net loss of $396.6 million, also mentioned the potential for “alternative content” in other areas.
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“You can look to comedy, you can look to sports,” he said. “We need a way to create alternative content that not replaces what Hollywood is doing, but enhances what Hollywood is doing by filling the vacancies that are sitting around waiting to be filled.”
