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Amidst the AMC stock plunge, the CEO criticized the ‘conspiracy theory’


After a difficult year with AMC stock, CEO adam aron looks like the start of the new year is coming to fight trolls and social media haters.

“Too much SPAM spread about AMC by twisted conspiracy theorists,” Aron said in one tweet on New Year’s Day with his nearly 285,000 followers. “Our REAL challenge (among others): the industry-wide domestic box office was $11.4 billion in pre-pandemic 2019. Just $7.4 billion in 2022. Up 64% compared to 2021, but 35% lower than 2019. Our view: it grows in 2023 & ’24.”

Volatile AMC stock ended last year down 85%.

2022 is a challenging year for the movie theater giant as consumers balk at inflated ticket prices and lame movies while choosing to stream more content on Netflix.

Comscore predicts the U.S. box office to end 2022 grossing $7.2 billion, down from $11 billion in 2019 (pre-pandemic). Weak box office sales hit AMC’s finances hard and caused rival Cineworld to go bankrupt in September.

During the first nine months of last year, AMC lost 56 cents a share on an adjusted earnings basis.

Experts expect a box office recovery this year led by hits like Creed 3.

“The good news for 2023 is that there will be more regular screenings,” said Paul Dergarabedian, senior media analyst at Comscore. Yahoo Finance Direct (video above). “The problem with 2022 is that we’re going to end up with about 40 films — let’s count them, less than 40 wide-releases. If each of those movies, let’s say $40 or $50 million, they make them. I wouldn’t count on Comscore’s $7.5 billion a year prediction for 2022, but close to $9.5 billion a year. But 2023 has a lot of great movies to tap.”

An image of the AMC theater box office during the coronavirus disease (COVID-19) outbreak, in Burbank, California, USA, June 30, 2020. Photo taken June 30, 2020. REUTERS/ Mario Anzuoni

An image of the AMC theater box office during the coronavirus disease (COVID-19) outbreak, in Burbank, California, USA, June 30, 2020. REUTERS/Mario Anzuoni

To shore up its finances, AMC made a series of transactions — from creating special preferred stock called $APE to raising $110 million in new equity through the sale of those APE shares to proposed reverse stock split.

Aron also rejected the notion that AMC is diluting shareholder value to stay afloat.

“Some of you are against the wrong dilution,” Aron added in his latest storm of tweets. “When industry demand drops by 35%, companies that fail to raise new capital will run out of cash and go bankrupt. Cineworld/Regal is currently in bankruptcy court. Not us! We know ourselves. What are you doing. Seeking your benefits !”

Brian Sozzi is an editor-in-chief and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and more LinkedIn.

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