Theater chain AMC’s stock plummets 25% as weak Hollywood box office weighs on earnings | LA Times

AMC’s net loss included a $202.6-million impairment charge tied to an investment in cinema advertising company National CineMedia.

The third quarter is expected to give little relief to theater owners, with AMC calling it “very challenging.”

AMC said in a statement it expects to achieve $30 million in “cost savings and revenue enhancements” through the end of 2017, including reduced staff and operating hours. The measure will affect its Kansas-based Theatre Support Center and AMC’s domestic theaters.

AMC said its initiatives will include “strategic pricing” and “promotional incentives” but did not provide details.

The box-office struggles come as AMC’s largest shareholder, Beijing-based Wanda, in response to government scrutiny, is unloading assets and pulling back on its aggressive strategy to become a major player in Hollywood. Wanda, which paid $2.6 billion for AMC in 2012, also owns Burbank production company Legendary Entertainment.

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Theater chain AMC’s stock plummets 25% as weak Hollywood box office weighs on earnings – LA Times.