While you have to respect AMC’s resilience, numbers like these are simply untenable. Something is going to have to give, one way or another. If the pandemic continues and the response remains the same, it’s only a matter of time before the cash reserves run dry. And even if things start trending back to “normal,” it’s going to take a bit to stoke the proverbial fire; that is, convince people to go back out in public en masse and get studios back on a regular film release schedule.
As companies such as PayPal and Zoom ride an unexpected wave of success brought about by the pandemic, others like AMC Entertainment are clinging on for dear life.
The theater operator said it brought in $119.5 million in revenue for the three months ending September 30. That’s down 90.9 percent compared to the same period in 2019 when AMC took in $1.312 billion in revenue.
Attendance more or less mirrored the financials, dipping 96.8 percent in the US alone and 92.5 percent worldwide.
As AMC President and CEO Adam Aron notes, theater operations in the US were suspended for nearly two-thirds of the quarter. Many locations have since reopened, albeit with limited seating capacities of between 20 percent and 40 percent. AMC has also boosted its cleaning policies and protocols, measures which have garnered record-high marks based on guest feedback.
The theater chain has additionally turned to private movie screenings and showing classic films at a reduced rate in order to get more patrons through the turnstiles.