The Strategist

Net loss of the world's largest cinema chain grows by 16.5 times in Q3

11/04/2020 - 03:05

AMC Entertainment Holdings, which owns the world's largest movie theater chain, has released its financial statements for the third quarter of 2020. The company finished it with a net loss of $ 906.5 million, which is 16.5 times worse than last year's figure.

In the third quarter, the company's cinemas began reopening after a five-month stop due to the COVID-19 pandemic. However, occupancy rates in both the United States and Europe remain extremely low, ranging between 20% and 40%.

The situation was aggravated by the postponement of many high-profile film premieres to 2021, which makes it more difficult to attract viewers back to cinemas. As a result, the company's revenue in the third quarter amounted to only $ 119.5 million against $ 1.3 billion a year earlier (-91%).

In general, since the beginning of the year, AMC Entertainment has already suffered losses of $ 3.64 billion.

Earlier, the second largest network in the world, Cineworld, was forced to announce the closure of all its cinemas in the US and UK.