AMC Entertainment’s chief executive gave pop stars Taylor Swift and Beyoncé credit for the movie theater operator reporting fourth-quarter gains in its top and bottom lines.
CEO Adam Aron said, "Literally all of that increase in AMC’s revenue and all of that increase in AMC’s adjusted EBITDA is attributable to our having shown [Swift and Beyoncé’s] two concert movies in our theaters in the U.S. and internationally."
The movie theater operator said its fourth-quarter revenue rose 11.5% year over year to hit $1.1 billion. Meanwhile, its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $42.5 million, 193% higher than the same three-month period in 2022.
"Our praise for Taylor Swift and for Beyoncé Knowles-Carter has no limit," Aron said.
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Swift released her "Taylor Swift | The Eras Tour" in mid-October. That was followed about seven weeks later by Beyoncé’s "Renaissance: A film by Beyoncé" making its official debut.
The two concert films didn’t just drive a boost to the company’s fourth-quarter revenue and adjusted EBITDA. They "caused AMC’s U.S. market share to noticeably rise" to "well more than 50% higher than our market share normally," Aron said.
AMC reported its quarterly net loss narrowed to $182 million.
He told analysts and investors the wider movie theater industry also saw benefits from Swift and Beyoncé "as just these two films represented fully one ninth of the complete fourth-quarter domestic industry-wide box office."
Swift’s "Eras Tour" film, at nearly $261.66 million globally, has generated more ticket sales than any other concert film in history. "Renaissance: A Film by Beyoncé" has brought in $43.99 million worldwide, according to Box Office Mojo.
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The two films marked AMC’s first foray into serving as the distributor instead of just an exhibitor – and AMC indicated it is something it will continue to do.
"Our phones have been ringing off the hook, and I can confirm to you today that we are now in constant touch with others who are seeking that AMC also distributes the movies of more world-class musical artists for later in 2024 and/or 2025," Aron said.
The CEO of AMC, which saw $4.8 billion in revenues and $396.6 million in net losses for the year, also noted potential in other areas for "alternate content."
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"We could look to comedy, we could look to sports," he said. "There has to be ways to create alternate content that will not replace what Hollywood’s doing, but will augment what Hollywood is doing by filling some of those empty seats that are just sitting there waiting to be filled."
