Premiere of ‘Wonder Woman 1984’ increases cinema stock, but AMC loses more ground – Update – Deadline

UPDATED with closing prices. The better-than-expected opening on the Christmas weekend in Wonder Woman 1984 is giving most exposure stocks a welcome boost as the misery of 2020 gives way to the hope of a brighter 2021.

The shares of Cinemark, Imax, Marcus Corp. and National CineMedia rose between 3% and 7% each after the sequel raised $ 16.7 million domestically, the best curve for any film during the coronavirus pandemic.

AMC, the largest theater circuit in the world, was a notable exception to the rally. Its shares fell 5% due to investors’ continuing concerns about their liquidity and a possible bankruptcy filing. At $ 2.38, AMC shares are at their lowest since early November, although they are still a notch above the $ 1.95 2020 low established in mid-March as Covid-19 cinemas closed throughout the Western Hemisphere. Cineworld, father of Regal Cinemas, made only a 1% gain on the London Stock Exchange.

Meanwhile, Cinemark’s shares, comparatively better fortified, rose 3% to $ 16.98.

WarnerMedia provoked a strong reaction from the industry by sending not only WW84 but its entire 2021 list for the streaming service HBO Max at the same time it hits theaters. The company reported a good audience at HBO Max over the weekend, but did not release any new subscriber data. The economy of launching big supporters without the hundreds of millions of dollars generated by theaters is significantly more challenging than using theaters to generate other revenue opportunities.

Analyst Eric Wold with B Riley predicts that Warner Bros. will reverse the course in its streaming plan, especially if exhibitors refuse the studio’s proposed revenue share and the films end up with little distribution beyond streaming. In a note to customers today, he called the film a “loss leader” designed to support HBO Max. The box office confirms Wold’s belief that “movie viewers want to become cinephiles”. Although it can play in 23% fewer cinemas than Warner Bros. ‘ Principle In September, WW84 it far surpassed the $ 9 million premiere of Christopher Nolan’s film. (Imax locations contributed 7% of domestic revenue and 10% on a global basis, he noted.)

Almost half of all HBO Max direct retail subscribers broadcast the Wonder Woman sequence, with the service overview running at triple the level of a holiday-free period in November. Still, Wold maintained: “The decision by HBO Max subscribers to watch“ WW84 ″ at home was more of a decision made by local cinemas that are closed and restricted to stay at home, as opposed to the preferred way of watching successful films from here forward.”

With major markets like New York, LA and San Francisco closed and other major cities facing significant capacity constraints, Wold said that WW84 the opening is equivalent to an arc of $ 110M-120M in a normal market. (The original film debuted at $ 103M in 2017.)

“We believe this helps to support the thesis that when consumers are able to return to theaters with attractive content, they will again become cinephiles – with the industry having the potential to return to normal in 2022,” wrote the analyst.