AMC Entertainment has seen revenues plummet by more than 90 per cent, according to its third-quarter figures.
The world’s largest cinema exhibitor, which recently warned it could go bust by the end of the year or by early 2021 due to COVID-19, posted revenue of $119.5m for the quarter, down from more than $1bn in the same period last year.
AMC noted in its earnings that it is “operating approximately 539 of its 600 domestic locations,” as of October 2020, but major markets like New York City and Los Angeles remain locked down.
Adam Aron, chief executive of AMC, said: “The magnitude of the impact of the global pandemic on the theatrical exhibition industry was again evident in our third quarter results, as theatre operations in the U.S. were suspended for nearly two-thirds of the quarter.
“And yet, despite unrelenting obstacles, the AMC team continued to make significant progress in pursuit of our three key priorities: to strengthen our liquidity position; to dramatically reduce operating and capital expenditures, and to continue to safely and successfully restore our operations.”
In an SEC filing last month, the firm, which is already heavily leveraged and recently renegotiated its debt to improve its balance sheet, said it was exploring potential sources of additional liquidity, including asset sales, joint ventures or minority investments.
In this week’s earnings release, Aron’s gave a recap of the company’s efforts: “Starting in March, we raised approximately $900m of gross proceeds from new debt and equity capital, secured more than $1 billion of concessions from creditors and landlords and raised more than $80m from asset sales.
“The duration and impact of this pandemic are still affecting us to this day and are certain to continue to affect our results going forward. And yet, as has been the case at AMC for 100 years, we have remained resilient and resourceful.
“The liquidity enhancing and leverage reducing actions that we already have taken and will further need to take, combined with our relentless focus on efficiency and cash management, are all crucial to navigating through this storm.”