83% Of AMC Entertainment Theaters Open, But Running Out Of Cash

Even with virtually all its U.S. movie theaters resuming operations, AMC Entertainment -- the largest U.S. movie chain -- says it could run out of cash by the end of this year or by early 2021.

Roughly 83% of AMC's domestic theaters were re-opened starting in late August -- with 494 U.S. theaters open out of its total of 598. However, those venues opened only at a limited capacity of about 20% to 40%.

B. Riley Securities estimates AMC could witness revenue sinking to $1.2 billion in 2020 from its total $5.5 billion in 2019 -- due to COVID-19 pandemic disruptions that included all theater closed from March through August.

Closed theaters in California, Maryland, New York, North Carolina and Washington represent 23% of AMC revenue, according to B. Riley Securities. Included in this list are the two biggest individual markets for movies -- Los Angeles and New York City.

For the rest of the year, the estimate is that only four big studio movies will be in U.S. theaters for the typically strong holiday season.



Major releases include: Universal’s “The Croods: A New Age,” Walt Disney’s “Free Guy,” Paramount Pictures’ “Coming 2 America” and Warner Bros.′ “Wonder Woman 1984.”

Eric Wold, entertainment analyst for B. Riley Securities, says the lack of new films has led to an 85% decline in same-theater attendance versus the same period a year ago.

Considering all these conditions, he writes: “We are not surprised to see studios continue to push out the film-release calendar under these circumstances.”

For the last two months (August 12 through October 12), national TV advertising spending for theatrical movies has totaled $73.5 million, according to iSpot.tv -- down from $297.9 million from the same period a year ago.

2 comments about "83% Of AMC Entertainment Theaters Open, But Running Out Of Cash".
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  1. Mark Laurence from Greater Media, October 26, 2020 at 5:53 p.m.

    I have an AMC Stubs membership which I reactivated 7 weeks ago. It was good to go back to the movies, although I have kept to very lightly attended matinees, and a couple of times had to remind someone to put their mask back on. Thanks to AMC for opening up carefully. The theaters are cleaner than I've ever seen and it feels safe to go. But the movie choices are horrible. After Tenet and The New Mutants, every film has been a C+ experience at best.  I want to support the theaters but the product is sorely lacking.

  2. Ben B from Retired, October 26, 2020 at 7:08 p.m.

    I saw Tenet a couple of weeks ago when the movie theaters reopened on Oct 9. I'll be going again on Friday.

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