AMC Theatres has revealed a massive $561M loss for the years second quarter following the theater chain’s extended closings.
Since the coronavirus spread outside of China, many businesses were forced to fundamentally changed the way they operated. The movie business, in particular, was hit hard by this with the productions of the majority of films and television shows being forced to shut down. The movie theater business was likewise affected as all theaters were shut down by the pandemic with AMC Theaters closing its doors earlier this year. Originally the theater chain had expected to be open once again by mid-July but spiking coronaviruses in the United States have made that an impossibility.
Following the shutdown, AMC Theaters was expected to lose somewhere between $2.1B and $2.4B in the first quarter alone. Now the reports of the second quarter have come in and while they aren’t as dire they are huge all the same. The company revealed that it had lost over $561M due to the shutdown.
In a statement, AMC CEO Adam Aron wasn’t surprised by the results and called the year the company’s most challenging in its 100-year history:
“It should be no surprise to anyone that with our operations shut the world over, and almost no revenues coming in the door, 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.”
He did seem confident, however, that the company would have a longterm future:
“A once in a century event has transformed 2020 into a brutal year, and movie theatre businesses have been hit particularly hard. Even so, as we look ahead, we remain optimistic about AMC’s long term future. 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.”
What do you all make of this report? Are you surprised to hear that AMC has reported such a massive financial loss? Can the company recover from this? Let us know what you think in the comments below!
Stay tuned for all the latest news on the future of AMC Theaters and be sure to subscribe to Heroic Hollywood’s YouTube channel for more exclusive video content!
Source: The Wrap