Monetary implications associated with the Covid-19 Pandemic has forced numerous corporations into bankruptcy, with most largescale brands having defended their market position with reserve funds or government aid. That hasn’t been the case for AMC Theatres, the largest operator of cinemas worldwide. Forced closure of their entertainment venues for several months has prompted financial fallout that AMC Theatres cannot sustain.
That fallout grew when reopening hundreds of locations worldwide for Fox’s final film, the New Mutants & Christopher Nolan’s Tenet. Internationally speaking, China was the singular market that sustained large profits for both films. The domestic box office saw minimal attendance from moviegoers, with Christopher Nolan’s Tenet total earning is $45.1 Million in North America. Profits sustained $307 Million worldwide.
Moviegoers Aren’t Attending Cinemas.
Fox’s final film after decades of operation was “The New Mutants”, which was meant to revitalize the X-Men Universe. That was until Disney purchased Fox for $71.3 Billion in 2019. Profits from the first film under Disney’s ownership was dismal & upsetting for Ex-Executives at Fox that put their faith into the New Mutants. It’d garner $19.9 Million at the domestic box office, and $39.2 Million at the international box office.
Production houses in Hollywood noticed the minimal fanfare & attendance for both films, prompting another round of delays for numerous films. James Bond’s No Time to Die won’t release until April 2021 & Fast Nine isn’t arriving until May 2021. Another movie from Warner Brothers was cancelled last week, announcing that Dune from Denis Villeneuve won’t arrive until October 2021. These extensive delays have prompted concern from AMC Theatres & their subsidiary brand, Regal Cinemas. A warning has been issued by both brands, which evoke their sustainability won’t be manageable for another twelve months on limited reserve funds.
6.9% Drop in AMC Stock
AMC Theatres has reported that they’re rapidly losing their remaining assets, which comes after reopening 494 cinemas in the United States of America. Those locations have seen an attendance decline of 85% since their official relaunch. This has prompted a 6.9% drop in AMC Theatres stock, with their warnings expected to increase that percentage. Unless Hollywood production studios begin supporting AMC Theatres & other brands, most cinemas won’t return to operation after the Covid-19 Pandemic has concluded.