AMC Theaters is remorting massive losses for the first quarter of the year due to the coronavirus shutdown.
Since the coronavirus hit the United States, many industries were affected and forced to put their businesses on hold. This of course includes the film industry which was effectively shut down due to concerns over the coronavirus. The movie theater industry was also hit by this, with theaters shutting down across the nation which included AMC Theaters. Now we know just how badly this has affected their first quarter.
The first quarter of the year, of course, consists of the months of January, February, and March. According to a report from Deadline, AMC Theatres is expecting to lose between $2.1B and $2.4B in these three months alone. The company had already been expecting a drop in revenue from last year from $1.2B to $941M.
In an SEC filing announcement, AMC Theaters expressed the belief that the industry would bounce back but did not underplay the effect the coronavirus pandemic has had on the company:
“We believe, but cannot guarantee, that the exhibition industry will ultimately rebound and benefit from pent-up social demand for out-of-home entertainment, as government restrictions are lifted and home sheltering subsides. However, the ultimate significance of the pandemic, including the extent of the adverse impact on our financial and operational results, will be dictated by the currently unknowable duration and the effect on the overall economy and of responsive governmental regulations, including shelter-in-place orders of the pandemic and mandated suspension of operations.
AMC Theaters has yet to announce a plan to reopen its theaters.
What do you all make of these losses? Can AMC Theaters bounce back from the coronavirus shutdown? Let us know what you think in the comments below!
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