Global Box Office 2024 To Decline 5% In 2023: Bad News For AMC, Cinemark?
Portfolio Pulse from Chris Katje
A projection for the global box office in 2024 forecasts a 5% decline from 2023, potentially impacting movie theater operators like AMC and Cinemark. The Hollywood Strike has caused production delays, affecting the number of movies released. Despite record-breaking films in 2023, Disney struggled without a $1 billion hit. Concert films may boost AMC's Q4 results. China's box office is expected to grow, but North America's could drop 11%. The decline is attributed to reduced production, not waning interest in cinema. The impact of the strike is expected to be felt in 2024, with a recovery possible in 2025.
December 20, 2023 | 12:12 am
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NEGATIVE IMPACT
AMC may face challenges in 2024 due to a projected 5% decline in the global box office, potentially affecting revenue. However, concert films like those of Taylor Swift and Beyonce could provide a Q4 boost.
The decline in the global box office directly impacts AMC's core business. While concert films may offer some relief, the overall negative trend could lead to lower revenues and potentially a decrease in stock price in the short term.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Cinemark Holdings Inc may experience a downturn in 2024 due to the projected 5% decrease in the global box office, which could lead to reduced revenues and a negative impact on its stock price.
Cinemark, being one of the largest theater chains, is likely to be negatively affected by the projected decline in the global box office, which is a key revenue driver for the company.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 80
NEGATIVE IMPACT
Walt Disney Co struggled at the box office in 2023 with no films reaching $1 billion. The 2024 outlook suggests further challenges due to the Hollywood Strike, potentially impacting Disney's revenue and stock price.
Disney's performance at the box office is crucial for its financial results. The lack of blockbuster hits and the delay of movie releases due to the Hollywood Strike could lead to lower revenues and a negative impact on its stock price in the short term.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 85