Film flops hit cinema profits

Have 2016's summer movies been a washout?

Film flops hit cinema profits

Alice Through the Looking Glass / Facebook

One of the world's biggest cinema groups has announced lower than expected sales and profits during its second quarter citing a lack of strong film releases.

US company AMC Entertainment, which is majority owned by China's Wanda Group, saw its revenues drop by 7% to $764m - down from $821.1m on 12 months before.

Revenues from ticket sales fell from $533.4m to $481.2m - while the average ticket price went from $9.91 to $9.63.

Adam Aron, AMC’s chief executive commented on the performance, "It would ordinarily be difficult to be pleased with a quarter in which a lackluster film slate caused us to share in the industry wide box office revenue decline that was down domestically some 10.7 per cent per screen year-over-year," he said.

"However, we are encouraged that this trend has already reversed itself with industry box office revenues up more than 7% as of July 29th, and a potentially record setting film slate being close at hand for calendar year 2017," Mr Aron continued.

AMC has announced two major acquisitions, taking control of Odeon cinemas in Europe for £921m and Carmike Cinemas in the US for $1.2bn, including debt.

The Wanda Group has also been linked with a bid to take control of half of Paramount Pictures.