AMC Theatres reported a loss of USD 561 million throughout its most recent quarter among the Covid-19 pandemic, which ended on 30th June. The company’s movie theaters have been shuttered worldwide since mid-March. During the same quarter a year ago, AMC reported earnings of $49.4 million. “This was the most challenging quarter in the 100-year history of AMC. That is why the progress the entire AMC team made since the second quarter began is all the more important and impressive,” CEO Adam Aron said in a statement.
Revenue in the second quarter was USD 19 million, a 99% decrease from the USD 1.5 billion in revenue AMC reported last year. Analysts were anticipating $11.9 million in revenue. AMC’s per-share loss was USD 5.38. Analysts tracking the stock via Yahoo! Finance expected the company’s loss per share to slightly better at USD 4.29, while others were anticipating $11.9 million in revenue.
The earnings release comes about a week after AMC and Universal Pictures closed on a deal to shorten the theatrical window for certain movies to as little as 17 days, compared with the average 90 days for large Hollywood films. After the window, Universal can offer its films for USD 20 rental on-demand, with AMC will taking a cut of the digital video revenue.
Rivals, including Regal Cinemas' parent company, Cineworld, have talked down upon the deal, which they say could undermine the theatrical business. “We do not see any business sense in this model," said Cineworld Chief Executive Mooky Greidinger in a statement after the pact was announced.
During the public health crisis, AMC moved to improve its balance sheet by restructuring USD 2.6 billion in debt last month. The company raised USD 300 million in additional cash to help it withstand the shutdowns. The company's most crucial priority at the moment is to focus on reopening theaters. The company has started with theaters overseas, pulling in USD 900,000 in revenue from overseas markets during the quarter. AMC stretegy teams have already started making plans to reopen theaters in the U.S. “Theatrical exhibition has always been resilient, and we are confident that at AMC we are taking the right steps to emerge from this crisis and to thrive once again as the leader in our industry,” Aron said.