AMC Theatres experienced a significant revenue boost in the fourth quarter of 2023, with total revenue surpassing $1.1 billion compared to approximately $990 million the previous year. This growth was accompanied by a notable increase in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), which nearly tripled to $42.5 million from $14.5 million in the fourth quarter of 2022.
The success of AMC Theatres can be largely attributed to the screening of concert films featuring pop icons Taylor Swift and Beyoncé. CEO Adam Aron highlighted the pivotal role played by these films, “Taylor Swift: The Eras Tour” and “Renaissance: A Film by Beyoncé,” in driving the company’s revenue and EBITDA growth. Aron emphasized that the entire revenue and EBITDA increase could be attributed to the screening of these two movies across AMC’s theaters in the United States and internationally.
The popularity of these concert films not only contributed to AMC’s financial performance but also played a significant role in attracting audiences back to the big screen. The success of Taylor Swift’s and Beyoncé’s films underscores the enduring appeal of theatrical experiences and their ability to draw crowds amidst the evolving landscape of entertainment options.
AMC Theatres’ CEO, Adam Aron, highlighted the exceptional performance of the two concert films featuring Taylor Swift and Beyoncé, stating that they collectively outgrossed all theatrical offerings from competitors like Paramount Pictures, Sony Pictures, and Lionsgate during the last quarter. Aron expressed astonishment at this achievement, emphasizing that neither film had been planned until midyear and marked the first movies ever distributed by AMC in its 103-year history. He hailed this accomplishment as a significant triumph for the company.
Taylor Swift’s concert film quickly became the highest-grossing domestic concert film following its release in October, followed by Beyoncé’s subsequent release dominating the box office. The films generated considerable excitement among audiences, with moviegoers dressing in themed outfits and transforming theaters into lively concert venues.
During the earnings call, AMC Theatres announced plans to introduce new versions of its well-known pre-show commercial featuring Nicole Kidman. Aron described this campaign as having acquired a “cultlike nature,” with the first of three 30-second versions set to debut on Friday and rotate in theaters over the coming months.
While 2023 had its successes, Aron noted that it didn’t fully realize its potential due to labor action delaying new releases in Hollywood as writers and actors went on strike against major production studios. However, hits such as “Barbie,” “Oppenheimer,” and upcoming releases like the “Mean Girls” remake and “Dune: Part Two” suggest a positive trajectory for movie theaters this year.
Aron emphasized that the recent and upcoming blockbusters, coupled with exclusive merchandise and collectible popcorn buckets offered by theaters, have reignited enthusiasm for the moviegoing experience nationwide. He concluded that moviegoers are drawn to theaters when Hollywood releases films of both quantity and quality, indicating a promising outlook for the industry.