AMC Theatres Raises ‘Going Concern’ Risks, Reports $2.4 Billion Loss

Lawrence Kim
June 3, 2020

The company expects its first-quarter financial results to reveal a loss between $2.1 and $2.4 billion. Net losses for the quarter increased to $224.5 million, up from $101.8 million in the prior-year period, while revenue fell to $941.5 million, down from $1.2 billion in the same quarter in 2019.

With growing uncertainty as to what the future looks like for AMC, the company acknowledged that "substantial doubt exists about our ability to continue as a going concern for a reasonable period of time".

Movie theaters worldwide have been shut since mid-March to help contain the spread of the novel coronavirus. Odds are that theaters, like theme parks and other locations reopening to crowds, will have to open to limited capacity in order to allow for social distancing, so even when ticket sales recommence, they'll be a fraction of what they were before the closure, even assuming crowds are willing to come back.

Most new movies have pushed back their release dates or shifted to digital PVOD (Premium Video On Demand) releases, like "Trolls World Tour", "Scoob!" and Pete Davidson's upcoming "King of Staten Island".

Entertainment added it believes it has the cash resources to open theaters "this summer or later".

Only a handful of movies are still scheduled for theatrical releases this summer: Russell Crowe's "Unhinged" on July 3, Christopher Nolan's "Tenet" on July 17, Disney's live-action "Mulan" on July 24, and "Wonder Woman 1984" on August 14.

The company said it had hoped they could reopen theaters this summer in time for Tenet and Mulan.

Other reports by Click Lancashire

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