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

(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.

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Read the statement.See AMC estimates.

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