AMC Entertainment Earnings Sink on Box Office Flops

king arthur legend of the sword
Courtesy of Warner Bros. Pictures

The summer of flops claims another casualty.

AMC Entertainment, the world’s largest theater chain, reported calamitous second quarterly earnings on Friday, mere days after its move to lower its annual projections resulted in widespread selloffs of its stock.

The Leawood, Kansas-based company reported revenue of $1.2 billion and loss of $1.35 a share for the three month period ending in June. The losses paled in comparison to the per-share profits of 24 cents that the company reported in the year-ago period. They did outstrip the $764 million in revenue that AMC announced for the same quarter in 2016, but AMC has acquired several theater circuits since that time, including Carmike Cinemas and European exhibitors UCI & Odeon and Nordic Cinema. Its greater size contributed to those gains. Wall Street had once been looking for AMC to report revenues of $1.23 billion and losses of 11 cents per share.

In a statement, AMC chief Adam Aron laid the blame for the poor results on the movies. Flops and duds such as “King Arthur” and “Baywatch” have dragged down ticket sales. Hits such as “Wonder Woman” have helped ease the pain, but the output from major studios has not matched the commercial success of previous years.

“While we strongly believe AMC is well positioned for the future, and are confident in the long term prospects for AMC to drive revenue and earnings growth, we are nonetheless extremely disappointed by AMC’s financial and operating results for the second quarter of 2017,” said Aron.

The AMC chief said he did not expect the box office to rebound until the fourth quarter of the year, which will host sequels to Thor and Star Wars. It’s a brutal downturn for a year that saw ticket sales surge on the back of spring hits like “Beauty and the Beast” and “Logan.”

“Consumer demand to ‘go to the movies’ was robust as 2017 started out in the first quarter,” said Aron. “And just ahead of us is a strong fourth quarter film slate, that creates the opportunity to lessen the angst surrounding box office weakness industry-wide in the second and third quarters of 2017. As a result, we remain optimistic about our ability to deliver meaningful value to our shareholders both for the balance of 2017 and in the years ahead.”

After losing roughly a quarter of their value earlier in the week, AMC shares were up 2.65% in pre-market trading.

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  1. The Truth says:

    The in-theater cinematic experience literally pales by comparison with home viewing on a decent contemporary flat screen system. Add to that the options to search, stop, start, replay, and fast forward whenever you wish on your own schedule while you enjoy your favorite libations, snacks, and intoxicants in your underwear. So even if you’re willing to pay for the movie, rather than pirate it, schlepping to the multiplex, getting gouged for crappy concessions, and enduring boorish audience behavior are hardly attractive entertainment propositions. The notion that watching a movie in a large dark room with a crowd is somehow a uniquely magical and optimal way to consume feature films is way past its expiration date. Regardless of the quality of future films, cinematic box office revenues will continue to decline as “going to the movies” devolves into a nostalgic niche market business.

  2. sharing is caring says:

    Its Simple – the Internet is flooding with Pirated web sites and its only getting worse
    and faster and simpler to download free movies – seamlessly – one click and your in

    Your 16 years old ” you go ask your mom for $30.00 to go see a movie plus popcorn
    and bus money – not easy ” – better yet go upstairs to your room and down load
    anything new movie you want for free its all HD Quality Sad – These Pirates are feasting
    on Hollywood Bones – If you were stealing from me….I would lock my doors real quick
    before you have nothing left to steal …..

    If I was AMC or Hollywood Studio – its time to lock your doors and clean up the internet mess

    Advertisers have no problem cutting checks to web sites the drive the most traffic and eyes balls

  3. AmandaSue2 says:

    King Authur was a green screen, special effects, digitally enhanced MESS! I knew in the first three minutes, when a herd of ridiculously huge, computer generated elephants (?), destroyed castles, villages and people. Apparently Guy Richey’s vision of the beloved Camelot was Authur being raised by prostitutes, and having an evil “Darth Vader” type uncle that got his power by killing family members (including Authur’s parents and assuming his position as ruler), and consulting with multi-headed sea creatures and a REALLY big snake summoned by a female witchy Merlin. I went and stayed – yep, STAYED until the end, thinking, at some point I’d see Sir Lancelot, Gwenevere, perhaps a round table and most of all Charlie Hunnum without a shirt! I stayed, and none of that happened…I’m obviously a gullible dork, but the popcorn was great!

  4. RQ says:

    Hey, maybe Wanda can fill them with all those Mainland China movies they think the world is dying to see!

  5. Timely Comment says:

    MANN…. PACIFIC Theaters… the UTC movies becoming a sports store… that READING Cinema Gaslamp cineplex closed down and being rebooted to some Hollywood Chinese Theater complex— San Diego suburbanites have seen corporate theater chains go RIP.

    I guess people’s modern religion of choice going to those silver-screen temples for their communal entertainment has become fractured and specialized— in these days of downloading, laptops and smartphones, the movie-going experience have shown spectacles (through cgi/IMAX/3D) on the screen and ‘megachurches’ of large multiplex buildings on a mall are the way to go…

    Film content and theater context are always the issue. Maybe AMC will be the next one gobbled up by larger multinational businesses in the theater shakeup?

  6. James Krisvoy says:

    I experienced an under illuminated 3D presentation at AMC Century 15. The 2D trailers suffered as well. Admission was $20 to see Valarian…which as we all know failed in the U.S. However, while it is unfortunate that AMC is in trouble, there is no excuse for lackluster presentation at a premiere facility no matter how a film is performing at the boxoffice. I had no time to complain in person. Bad presentations cannot help to ease AMC’s problems so here’s hoping they fix that particular problem once and for all.

  7. Give me light!!!! says:

    They could always just put the lens cap on their projectors to save even more electricity. The audience won’t even notice, as all AMC movies already feature dark, muddy projection.

  8. Rudy Mario says:

    Simple solution. Follow the lead of cable – keep raising ticket prices – and to your (theater) extinction.

  9. heyitsron says:

    One of the lamest moves was in filming Baywatch as an “R” rated movie with no female nudity. That means a large segment of movie goers were excluded from seeing the movie while nothing remained in the film for those “of age.” Getting “cutesy” can be real expensive such as having Zac lift up the cadaver’s member not only to gross out the movie audience but profits as well. AND. For the umpteenth time, you do it with ORIGINALS. Those who made the show great. Not just bring them on in cameos and think this, and only this, will draw in the movie going audience. Never works. David as the real Mitch. Pamela as the real CJ. And the world will beat a path to your door. And what did this article omit? C.H.i.P.s. Another 2017 flop. Because no Erik and no Larry. C.H.i.P.s was given the not so coveted one star out of five by ROTTEN TOMATOES. As in CHIP Happens.

    • RQ says:

      Yes, because there’s nothing hotter, and no bigger guarantee of boffo boxoffice, than people over 50 and 60 years old running around in swimwear, or near 70-year-olds playing motorcycle cops. You’ve REALLY got to give up this pipe dream. These movies flopped because no one was really screaming for them in the first place, just like MOST reboots of 70’s and 80’s TV shows these days.

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