AMC Theatres, the world’s largest cinema chain said, today, that there is ‘substantial doubt’ it can remain in business after it has been ravaged by the global health crisis. The chain said that it expects to report next week that it lost between $2.1 billion and $2.4 billion in the first quarter, despite the fact that theaters were closed for only 2-3 weeks of the 13-week quarter. Revenues for the quarter were roughly $941.5 million, down 22% from $1.2 billion in the same quarter in 2019. Thus far, after nearly 5 weeks in the current (2nd) quarter, the company remains completely closed. Of no surprise to anyone, the company reported in their regulatory filing today that,”We are generating effectively no revenue.”
The company expects that things for their industry will be slow to return, stating, “Even if governmental operating restrictions are lifted in certain jurisdictions, distributors may delay the release of new films until such time that operating restrictions are eased more broadly domestically and internationally, which may further limit our operations.” AMC is closely monitoring various restrictions by federal, state and local governments with respect to re-opening and various operating restrictions. Similarly, the company’s international operations are being affected by government restrictions, globally, and this will continue to be the case in the months ahead.