AMC Chain Posts $567.2 Million Loss as Film Fans Trickle Back

Tiger Newspress2021-05-07

(Bloomberg) -- AMC Entertainment Holdings Inc. reported a first-quarter loss of $567.2 million, more than Wall Street expected, as moviegoers trickled back to reopened cinemas but continued to show concerns about the pandemic.

The loss amounted to $1.42 a share, AMC said Thursday, smaller greater than the $1.31 a share loss that analysts had expected, on average. Revenue slid 84% to $148.3 million, missing analysts’ predictions of $156.3 million. There was little new to see in theaters during the period.See more details.

Key Insights

AMC has reopened nearly all of its North American theaters and is slowly bringing customers back to cinemas in Europe. But recovery will take time. Sales peaked at $1.51 billion in the second quarter of 2019, and analysts don’t see quarterly revenue topping $1 billion again until the final three months of 2021.The company nearly filed for bankruptcy five times during the pandemic, Chief Executive Officer Adam Aron has said. He has pulled together financing to keep the company afloat as the worst effects of the virus fade. AMC recently dropped plans to issue 500 million new shares, saying investor authorization for a smaller equity sale will be sufficient.On May 4, AMC postponed its annual meeting until July. Two proxy advisers, ISS and Glass Lewis, recommended investors vote against Aron’s pay package, saying a $5 million discretionary cash bonus was excessive in light of the Covid-19 crisis.Shares of the Leawood, Kansas-based chain have soared this year after “influencers” on financially oriented social media recommended that people buy the stock. Aron praised the activity in an interview with a YouTuber and has tweeted about it.

Market Reaction

AMC shares were little changed in extended trading after the results were announced. They had gained 325% through the close Thursday in New York, buoyed by the social media attention.

Get More

Read the statement.See AMC estimates.

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Comments

Rem35
2021-05-11
Rem35
We are waiting
The_scalper
2021-05-10
The_scalper
Need to ride out this painful period
RichTea
2021-05-08
RichTea
Buy and hold.
thefatboi
2021-05-07
thefatboi
What kind of bullshit article is this? Please do some actual research before posting. You are misleading the public with false information. Some quick facts; CEO of AMC (Adam Aaron) just held their Q1 earnings call and stated that:- AMC has more liquidity right now than in its 101 year history, and enough liquidity to sustain operations until the END of 2022 (hence no 500M share authorization)- Food and beverage sales are up 45% since Q1 2019!
Kel9670ong
2021-05-07
Kel9670ong
Share price going to fall rapidly
KriS
2021-05-07
KriS
Frankly speaking, how many company do well during COVID ? Many of the shareholder understand and see that. As of now, if everything goes back to normal, I’m very sure AMC will continue to generate profits and even greater profits upcoming years ahead. To the MOON AMC !