- As AMC Theatres first-quarter numbers underperform, made worse by the pandemic, it warns it might not survive after it's over.
With almost three months since movie theaters closed due to the COVID-19 pandemic, AMC Theatres has revealed it has “substantial doubt” that will survive the economic hit, even if theaters reopen soon. AMC has already been on the brink of bankruptcy.
CNN noted that it is expected that AMC has lost between $2.1 and $2.4 billion in the first quarter of 2020. It was revealed in a new regulatory filing. Compared to last year’s $1.2 billion, the first quarter’s overall revenue of $941.5 million. Movie theaters began closing due to the pandemic on March 16, two weeks before the end of the quarter.
AMC, however, stated it had had $178.3 million in cash as of April. The company also anticipates having enough “cash resources to reopen our theaters and resume our operations this summer or later.”
AMC has been one of the movie theaters greatly affected by the closures. Even if they wish to reopen, it must adhere to the local mandates places in different states that may not allow them to. While states including Texas and Georgia have given the ‘ok’ to open, bigger cities such as L.A. and New York have no reopening date in sight.
The theater chain also called out Universal due to the comments by CEO Jeff Shell and the success of Trolls World Tour on PVOD. Shell suggested the studio may consider releasing movies on-demand forgoing a theatrical release. AMC responded by claiming it won’t play Universal movies. The issue brought up the issue to the front stage of whether studios may choose the PVOD route, changing the movie theater experience.
Although AMC seems to be the most affected, other movie theater chains are feeling the weight of the economic impact. Cinemark’s CEO mentioned this week that the theater won’t be back in “full-on rhythm” until 2022.