AMC Theatres reported loses and missed its projections for Q1 of 2021. However, the numbers were not as bad as last year, signaling a return to normalcy for the company after a rocky year due to the coronavirus (COVID-19) pandemic.
According to Variety, AMC earned $148.3 million in revenue — down 84.2 percent from Q1 2020 — and suffered a loss of $1.42 per share. This is significantly better than the $20.88 per share loss from last in the year-ago period. This all adds up to a net loss of $567 million, much better than the $2.2 billion the company lost last year during this time period. Wall Street analysts expected better numbers — a loss of $1.38 per share on revenue of $157.7 million. Part of Q1 2020 occurred before the pandemic hit the United States and Europe, making yearly comparisons more complicated than usual.
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AMC Theatres has had a tough go since the pandemic began, shutting down its locations across the world. At one point, it was unclear if the company would make it out of the pandemic. However, CEO Adam Aron was able to avoid bankruptcy by renegotiating the company’s debt and raising more capital. The chain also got an unexpected boost during thanks to the “Meme Stock Market” subreddit, which also raised the value of GameStop’s stock.
“We know that AMC is losing money today, not making money today,” Aron said on a call with investors. However, he is confident in recovery, saying that “circumstances of AMC are so radically different and radically improved than they were just months ago” and that “Vaccinations are our way out of all of this.”
Theaters have seen a bit of a rebound over the last few weeks. The success of Godzilla vs. Kong rose the price of AMC’s stock, while Mortal Kombat and Demon Slayer: Mugen Train opened to strong numbers for an R-rated action film and an anime blockbuster, respectively, during a pandemic. A packed summer lineup — including A Quiet Place Part II, F9, Black Widow, The Suicide Squad, Jungle Cruise, Ghostbusters: Afterlife and Top Gun: Maverick — also bodes well for the industry.
However, the pandemic has drastically changed the movie landscape. Many media legacy companies have shifted their focus to streaming. WarnerMedia said that some smaller DC movies — such as Batgirl — that would have gone to theaters before the pandemic will now go straight to HBO Max. However, this will not stop blockbuster movies like The Batman from premiering exclusively in theaters. Meanwhile, Paramount+ plans to release a new movie every week in 2022, a feat that Netflix set out to accomplish for 2021 at the start of the new year.
Source: Variety
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