Theater chain AMC forecasts Q2 loss due to fewer big releases

(Reuters) -AMC Entertainment Holdings said on Wednesday it would report a loss for the second quarter compared to a profit in the year-ago period, blaming a thin slate of big releases due to last year's dual Hollywood strikes.

The writers and actors' strikes of 2023 crimped much of the film industry, as it put a pause on writing and production of new content and delayed key blockbuster releases such as the "Dune" sequel, squeezing business at companies like AMC.

The world's largest theater chain forecast a net loss of $32.8 million, of 10 cents per share, for the quarter ended June 30, compared to a profit of $8.6 million, or 6 cents per share, a year earlier.

The company's shares, which have seen wild swings in recent months following the brief return of meme stock influencer Keith Gill, were down nearly 4.3% at $4.86 in morning trade.

Still, CEO Adam Aron noted a rebound in the company's business toward the end of the quarter, adding industry-wide revenues would continue to grow in strength in the back half of 2024 and beyond.

"AMC enjoyed a significant increase in our daily revenues in June of 2024 as compared to those of April and May... so far, the impressive box office performance has continued into July," Aron said in a statement.

AMC expects total revenues for the quarter to slide about 24% to $1.03 billion.

(Reporting by Deborah Sophia in Bengaluru; Editing by Shinjini Ganguli and Shailesh Kuber)