Theater chain AMC in want of extra blockbuster films, shares fall

Nov 8 (Reuters) – AMC Leisure Holdings Inc (AMC.N) stated its third-quarter loss widened, with the theater chain operator burning by way of additional cash to maintain its 950 theaters working as fewer blockbuster releases diminished footfall in cinemas.

The corporate additionally stated it raised simply $36.4 million from the sale of 14.9 million of its most well-liked shares APE , listed in August, sending them down 5.6% in prolonged buying and selling.

“I feel their announcement that they started promoting a few of their introduced 425 million APE shares at such a low per-share worth speaks to their money wants (or maybe extra frivolous spending),” stated Wedbush Securities analyst Alicia Reese.

Widespread shares of the Leawood, Kansas-based firm fell about 4%.

Finance chief Sean Goodman stated working money burn for the quarter was a unfavourable $179.2 million and was damage by a “comparatively quiet field workplace in August and September.”

On an earnings name with traders, Chief Government Adam Aron famous the variety of huge film titles being launched by main studios was nonetheless down 20% to 30% versus pre-pandemic norms.

“At this level, there is just one subject that ought to be on the highest of all minds and the tip of all tongues. It isn’t the coronavirus, it is not streaming, it is not home windows. It’s this: movie show operators want extra films,” he stated.

Nevertheless, Aron remained hopeful concerning the film slate within the fourth quarter, anticipating titles together with “Black Adam”, “Black Panther: Wakanda Ceaselessly” and “Avatar: The Method of Water” to attract in additional crowds.

Adjusted income through the quarter ended Sept. 30 was $1.01 billion. Analysts on common had anticipated whole income of $961.1 million, in line with Refinitiv.

Web loss was $226.9 million, in contrast with $224.2 million a 12 months earlier.

“The query for AMC comes right down to stem losses and handle its steadiness sheet whereas going through fewer main films within the pipeline and ongoing operational challenges,” stated Jamie Lumley, analyst at Third Bridge.

Reporting by Chavi Mehta in Bengaluru; Enhancing by Krishna Chandra Eluri

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