AMC inventory falls 10% as rival Cineworld closes film theaters
Invoice Tompkins | Michael Ochs Archives | Getty Photos
Cineworld, which owns Regal Cinemas, will shut its U.Ok. and U.S. theaters this week. CEO Mooky Greidinger advised Sky Information that the closures may final greater than two months.
The stoppage follows the Friday announcement that “No Time to Die,” the most recent James Bond flick, might be pushed to an April 2021 launch date. Circumstances within the U.S. have spiked, and the UK is seeing a resurgence as nicely.
Within the U.Ok., the Odeon cinema chain, which is backed by AMC, is shuttering 1 / 4 of its places throughout the week and solely working these theaters on weekends.
Warner Brothers’ “Tenet” faltered on the home field workplace, whereas different studios have chosen to maneuver their huge films to video on demand or streaming providers within the U.S. Selection reported Saturday that there are rumblings that Disney’s “Soul,” produced by its Pixar animation studio, may very well be moved to its streaming service, Disney+.
On the heels of the information, Loop Capital Markets revised its estimates for the home field workplace. Analyst Alan Gould wrote in word Monday that ticket gross sales are anticipated to plunge 85% within the fourth quarter, a a lot steeper decline that its prior forecast of gross sales down simply 25%. The third-quarter field workplace is predicted to drop by an extra 10% from the agency’s forecast, Gould stated.
“We additionally query if the weak spot will bleed into 2021,” he wrote.
On Friday, S&P International Rankings lowered its issuer credit standing on AMC from CCC+ to CCC-, saying that the corporate’s money burn may speed up because it reopens venues. The scores company stated that AMC may run out of liquidity within the subsequent six months until it raises extra capital or film attendance ranges considerably enhance.
AMC’s inventory, which has a market worth of $460 million, has plunged 41% up to now this 12 months.