Box-Office Bust Continues As Movie Theater Chains Report Losses, Falling Foot Traffic
The numbers for AMC, Regal and Cinemark are rolling in, and they aren’t looking great.
Foot traffic for three of the top theater chains is still far below pre-pandemic levels, according to Placer.ai data. The lack of blockbusters to start the year and the continued popularity of at-home entertainment options drove the losses, but the numbers are also reflective of the chains shrinking their footprints, as Placer.ai's data reflects total traffic for the brands rather than same-store comparisons.
Visits to AMC, the world's largest theater chain, were down 64% in April and 45.4% in March compared to 2019. And the declines aren’t just in comparison to pre-pandemic: Traffic fell 49.4% year-over-year in April.
AMC has closed 106 theaters since the pandemic began and opened 49 new ones, recording a 57-location net loss.
Its Q1 previews showed a minor quarterly loss. It projected $951.4M in revenue, a few million down from the same time last year, but this quarter's net loss of $163.5M is actually lower than Q1 2023’s $235.5M hit.
Regal's foot traffic tells a similar story, with visitor numbers in April 66% below their 2019 levels and 50.3% down year-over-year, according to Placer.ai.
Regal's parent company, Cineworld, filed for Chapter 11 bankruptcy in 2022 and closed 69 locations in the process, unable to get out from under $5B of debt in the face of pandemic-driven losses. It exited bankruptcy in June 2023 via a master lease agreement and the surrendering of 16 additional theaters.
The similarly named Cinemark has also been closing locations as its foot traffic and revenue continue to fall.
Cinemark’s visits in April were half what they were a year ago and down 48% from 2019, Placer.ai said. Cinemark itself reported attendance is down 7.5%, which it attributed to fewer movies and last year's writer strikes. It said it expects traffic to recover within the next two years.
Cinemark posted a net profit of $25M in Q1, though its revenue fell 5.2% from the previous year.
CORRECTION, JUNE 11, 2:45 PM ET: This story has been updated to reflect Placer.ai's public-facing name.
