AMC shares jump after Taylor Swift concert film grosses $100 million in advance ticket sales

CNN
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AMC Entertainment is feeling the effects of Taylor Swift’s legion of fans.

AMC shares (Your mother) rose 11.5% in Friday afternoon trading after the movie theater chain announced that the concert film “Taylor Swift: The Eras Tour” had generated more than $100 million in advance ticket sales.

The company said in a statement on Thursday that audience demand for the film “was amazing from the moment it was first announced.” AMC noted that American audience demand was particularly strong among viewers who chose to watch the film in large screen formats such as IMAX.

Swift generated early buzz for the film on August 31, when she announced it to her nearly 275 million Instagram followers. “Taylor Swift: The Eras Tour,” the most profitable concert film in history, opens on Friday, October 13. There was no doubt about the success of the three-hour film, with the concert tour expected to exceed $2 billion in 2018. Ticket sales in North America.

“Taylor Swift: The Eras Tour” also broke AMC’s record for first-day advance ticket sales with $26 million.

AMC Theaters Distribution, along with sub-distribution partners Variance Films, Trafalgar Releasing, Cinepolis and Cineplex, has reached deals with operators to show the film in more than 8,500 theaters in 100 countries. Of those theaters, 4,000 will be in the United States.

AMC isn’t the only company reaping the rewards from Swift’s massive fanbase. Cinemark Holdings shares (CNK), a theater chain with about 500 locations, gained more than 5% on Friday. Ticket sales for the Eras Tour were “setting local pre-sale records,” the company said in a press release.

For AMC, the recovery came after sharp declines over two years. AMC shares reached a record high of $339 in June 2021 and fell to $7.05 on September 11. On Friday, AMC shares closed at $9.26.

The blessing for movie theater chains may continue in December, when “Renaissance: A Film by Beyonce” is scheduled to be released.