AMC Shares Jump After Taylor Swift Concert Film Grosses $100 Million in Advance Ticket Sales
AMC Entertainment is experiencing a significant boost thanks to Taylor Swift’s massive fan following.
Shares of AMC (AMC) saw an impressive surge of 11.5% during Friday afternoon trading after the popular movie theatre chain reported that the concert film “Taylor Swift: The Eras Tour” had generated over $100 million in advance ticket sales.
In a statement released on Thursday, AMC acknowledged the incredible demand for the film, which has been building since its initial announcement. The company highlighted the particularly strong interest from US audiences, particularly those opting to watch the film in large-screen formats like IMAX.
The buzz around the film started on August 31 when Taylor Swift herself, with nearly 275 million Instagram followers, shared the news. “Taylor Swift: The Eras Tour” was already on track to become the most profitable concert film in history before its release, with the concert tour itself expected to surpass $2 billion in North American ticket sales.
Notably, the film also set a new AMC record for advance first-day ticket sales, raking in an impressive $26 million.
AMC Theaters Distribution, in collaboration with sub-distribution partners Variance Films, Trafalgar Releasing, Cinepolis, and Cineplex, has secured deals with operators to screen the film in over 8,500 theatres spanning 100 countries. Of these theatres, 4,000 will be located in the United States.
AMC isn’t the only company reaping the rewards of Taylor Swift’s massive fan base. Shares of Cinemark Holdings (CNK), a theatre chain with approximately 500 locations, also saw a significant increase of over 5% on Friday. The company announced in a news release that ticket sales for the Eras Tour film were “setting domestic presale records.”
This resurgence in the movie theatre industry comes after a challenging two-year period marked by sharp declines. AMC’s shares reached a record high of $339 in June 2021 but fell to $7.05 on September 11. On Friday, AMC’s shares closed at $9.26.
The positive trend for movie theatre chains may continue in December with the release of “Renaissance: A Film by Beyonce.”
