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Movie-theater operator AMC blames bad earnings on bad movies

Aug 1, 2016, 18:23 IST

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This summer's slate of big ticket movies have been a disappointment.

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And Hollywood's output is hitting AMC Entertainment, which operates movie theaters, pretty hard.

On Monday morning AMC reported second quarter earnings and revenue that missed expectations, with the company citing a "lackluster film slate" that has seen industry-wide box office revenue fall 10.7% per screen.

AMC CFO Craig Ramsey added in a statement on Monday that industry-wide box office revenue was down 9.3% on a 10.6% attendance drop.

In the second quarter, AMC earned an adjusted $0.24 per share on revenue of $764 million. Expectations were for earnings of $0.26 on revenue of $774.3 million.

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In pre-market trade, shares of AMC were down as much as 6.8%.

July, however, has served the company better with year-on-year revenues up 7% as of July 29.

The company is also bullish on 2017's film slate - which is expected to feature another installment of Guardians of the Galaxy, Pirates of the Caribbean, and Transformers, in addition to sequels for Disney/Pixar's Cars, Bad Boys, and Fast & Furious.

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