Cinema Operator AMC Loses US$2bn In Q1

AMC Entertainment Holdings said on Tuesday it was expecting to reopen its cinemas globally in July after the Covid-19 crisis forced it to shut them for months that hurt its first-quarter results.

The company said it was planning to reopen almost all its US and UK theaters in July, in time to showcase Christopher Nolan's upcoming film "Tenet" slated for release on July 17 and Disney's "Mulan" on July 24.

The world's largest cinema operator recently flagged "substantial doubts" about its ability to continue operations, if forced to keep its theaters closed for a longer period due to social distancing measures.

Much like most other out-of-home entertainment businesses, movie theater chains have felt the impact of lockdowns and social distancing measures, which further added to challenges due to a broader consumer shift to streaming services.

AMC's total revenue fell 21.6 per cent to US$941.5 million in the quarter ended March 31, compared with analysts' average estimate of US$951.4 million, according to IBES data from Refinitiv.

Net loss widened to US$2.18 billion, largely due to an impairment charge of about US$1.85 billion related to assets and goodwill.

China's Dalian Wanda owns 38 per cent of the AMC chain. (Reuters/RTHK)