The future of AMC Theatres seems to be uncertain. The movie chain acknowledges the financial effects of COVID-19 and how it has “substantial doubt” about their future.
The AMC Theatre company, which closed its movie theaters earlier this year, expects to have lost between $2.1 billion and $2.4 billion in the first quarter alone. The movie theater chain also said that its revenue fell to $941.5 million, which was down roughly 22% from $1.2 billion in the same quarter of 2019. For second quarter of 2020, the financial situation has gotten substantially worse. If things don’t improve, the company might be forced to close its doors.
Today, the company held a regulatory meeting and stated how they are generating effectively no revenue. It was said in the meeting that the movie theater company had a cash balance of $718.3 million as of April 2020. An AMC representative stated the following:
“We believe we have the cash resources to reopen our theatres and resume our operations this summer or later. Our liquidity needs thereafter will depend, among other things, on the timing of a full resumption of operations, the timing of movie releases and our ability to generate revenues.”
The biggest challenge for the company is continued delay of theatrical releases. Highly anticipated films such as Mulan, Black Widow, and more have been pushed back due to health concerns during the pandemic. We’ll have to see how business activity resumes once movie releases return to theaters.
Source: WESH 2 News
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