AMC’s third-quarter revenue plummeted by more than 90% due to the vacant theater

Media reported that AMC Entertainment has been under enormous financial pressure in the past few months due to the continuing global health crisis. If new profit points cannot be found, the company’s future will become increasingly uncertain. AMC Entertainment reported third-quarter revenue of $119.5 million, down 91% from a year earlier. By comparison, revenue exceeded $1 billion in the same period last year.

AMC's third-quarter revenue plummeted by more than 90% due to the vacant theater

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AMC Entertainment said in its earnings report that as of October 2020, about 539 of its 600 locations in the U.S. were operating, but cities such as New York and Los Angeles still faced significant problems.

In terms of source, although people can’t wait to see the film, there are not many big works on the market to attract the audience.

The company even filed a new document on Monday to try to secure nearly $50 million in guarantees by selling 20 million Class A shares.

Adam Aron, chief executive of AMC Entertainment, said in a statement that “the impact of the COVID-19 pandemic remains to this day and will continue for some time to come.” The company has also been warning about its dire financial situation for months.

According to a public filing filed in October, AMC will run out of operating funds by the end of 2020 or early 2021 if current cash consumption rates are used up.

To raise money, the company cited potential options, such as negotiating theater rentals with landlords, forming joint ventures with other business partners, such as Universal Pictures, and even hinting at possible asset sales.

The bigger problem, however, is the lack of attractive blockbusters across the industry and the spike in COVID-19 infections across the United States. In a bad environment, even if AMC can raise some cash, it may be difficult to avoid bankruptcy.