AMC Theaters lost $4.6 billion in 2020, but its CEO isn't worried

[midian182]

What just happened? The pandemic has decimated many industries, from the aviation and hospitality sectors right through to cruise lines, though few have felt the effects quite like cinema chains. AMC Theaters, for example, lost $4.59 billion in 2020, and its fourth-quarter revenue was down almost 90%, but its CEO is confident that things are about to get better.

In its full-year earnings report released Wednesday, AMC revealed it lost $4.59 billion last year, a stark contrast to the $149 million net loss it recorded in 2019. Yearly revenue was down to $1.24 billion, a 77% fall compared to the previous year.

The fourth-quarter results painted an even grimmer picture. Revenue was down 88 percent year over year, to $162.5 million. That beat estimates of $142.4 million, but AMC still lost $946 million during the quarter, dwarfing the $13.5 million it lost in Q4 2019.

This might sound like the writing is on the wall for AMC, but CEO Adam Aron isn’t worried. He points to the continuing vaccine rollout, theaters in New York and Los Angeles about to reopen, and the upcoming schedule of blockbuster movies such as Black Widow as lights at the end of the tunnel.

“Taking these facts together, we have reason to be optimistic about AMC’s ability to get to the other side of this pandemic,” Aron said. “Our focus is no longer on survival, but now has turned instead to directing a surge in movie-going and on the recovery of AMC.”

Another reason Aron sleeps well at night is the money AMC has been able to raise during the pandemic—it now has over $1 billion of cash in hand. Its stock price also got a boost when day traders belonging to a Reddit group bought stocks in companies expected to fail—as was the case with GameStop. AMC’s shares are up 365% so far this year.

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https://www.techspot.com/news/88890-amc-theaters-lost-46-billion-2020-but-ceo.html

 

[VitalyT]

 

[NicktheWVAHick]

A movie theater is the absolute LAST place I’m going to visit when things get back to normal.

 

[DZillaXx]

I'd rather just watch a new movie on my TV at home. Even at $20 or $30 bucks for a timed rental.

 

[mctommy]

Cruise ships and movie theaters are the last places I will visit when things go back to "normal".

 

[3volv3d]

Couldn't care less about jobs if I tried.
Why do people work? To pay bills, to buy things, to keep the world turning?
When people these days can horde $200Billion, money doesn't make the world go around anymore.
Debt does.
I am pretty sure no country is in the black. It was all red letter final demands back in the 20th century, and now we just push negative numbers about.
But people work to have something to do, to not go insane with the realisation that life is utterly pointless.
Babies, school/education( that's outdated), job, house, car, family, repeat.
At the moment all jobs are pretty much detrimental to (not society, society is detrimental to itself) but the planet. Which has a knock on affect to society sure, but no one will force companies to change their ways, hell we couldn't convince most the planet to wear masks during this covid time, it was a mega burden on living their pointless horrible lives.
And "normal", the worst thing we can be aiming to go back to, did the pandemic not show us that aviation was a major pollutant, we have been better off with the pandemic ffs.

 

[Theinsanegamer]

I'd love to go to the movies once the mandates are lifted, here's the thing: there are no real good movies coming out. Hollywood has fully run out of ideas and run out any creative type that doesnt toe the narrative under one guise or another, so there's no one left with an original idea in their bones. Seeing the likes of T2 or the OG star wars on the big screen again would be more fun then modern claptrap.

Hopefully the cut budgets and debt load will convince movie makers to cut back on flashy effects and get back to genuinely good stories and characters.

Couldn't care less about jobs if I tried.
Why do people work? To pay bills, to buy things, to keep the world turning?
When people these days can horde $200Billion, money doesn't make the world go around anymore.
Debt does.
I am pretty sure no country is in the black. It was all red letter final demands back in the 20th century, and now we just push negative numbers about.
But people work to have something to do, to not go insane with the realisation that life is utterly pointless.
Babies, school/education( that's outdated), job, house, car, family, repeat.
At the moment all jobs are pretty much detrimental to (not society, society is detrimental to itself) but the planet. Which has a knock on affect to society sure, but no one will force companies to change their ways, hell we couldn't convince most the planet to wear masks during this covid time, it was a mega burden on living their pointless horrible lives.
And "normal", the worst thing we can be aiming to go back to, did the pandemic not show us that aviation was a major pollutant, we have been better off with the pandemic ffs.

Pointless nihlism is a contaigon worse then coronavirus ever was. Busted half arsed green text is a close second.

 

[3volv3d]

Oh noes, you said nihlist, must be wrong aghhh... great comeback.
But, the earth has limited resources, we, refuse to play harmoniously. You can deny that capitalism is a failure, that the infrastructure, teachings of those before us, have laid a foundation to a failed future.
We live in a system they created, not we, they. The system is the way it is, because it is corrupt, and refuses to change. Why build a world that strives to be better, where people look after one another, instead of this evil monstrosity we have?

 

[koblongata]

Couldn't care less about jobs if I tried.
Why do people work? To pay bills, to buy things, to keep the world turning?
When people these days can horde $200Billion, money doesn't make the world go around anymore.
Debt does.
I am pretty sure no country is in the black. It was all red letter final demands back in the 20th century, and now we just push negative numbers about.
But people work to have something to do, to not go insane with the realisation that life is utterly pointless.
Babies, school/education( that's outdated), job, house, car, family, repeat.
At the moment all jobs are pretty much detrimental to (not society, society is detrimental to itself) but the planet. Which has a knock on affect to society sure, but no one will force companies to change their ways, hell we couldn't convince most the planet to wear masks during this covid time, it was a mega burden on living their pointless horrible lives.
And "normal", the worst thing we can be aiming to go back to, did the pandemic not show us that aviation was a major pollutant, we have been better off with the pandemic ffs.

True, sitting on a pile of money can be fun, for a while, but ultimately will freak out, working is so much more fun.

 

[kiwigraeme]

 

[Kirby1]

I've been off work for the whole pandemic and I don't mind not working at all, infact I love it and I definitely wish I never had to go back to work, but there is a huge difference between not being able to work right now and the idea of not having to work at all. If we knew we didn't have to plan our lives around being employable so we can survive, we could all find other much more fulfilling things to do with our time. Since anytime we don't have to work we know it's just temporary, no one ever starts planning out a life they want when they don't have to work. Its extremely short sided to say that working keeps people sane because generally speaking people can't even experience what life would be like without knowing we have to work all the time. You can only really compare to what it's like to be unemployed which is stressful for anyone since it makes it harder to survive. If work was not the means to survival, humans could really thrive. We definitely have the technology to reinvent society at this point, we just don't have any governments or leaderships that make that their goal. Eventually though, technology will be so able to replace human workers that a tipping point will be reached and society will be forced to adapt.

 

[defaultluser]

I'd love to go to the movies once the mandates are lifted, here's the thing: there are no real good movies coming out. Hollywood has fully run out of ideas and run out any creative type that doesnt toe the narrative under one guise or another, so there's no one left with an original idea in their bones. Seeing the likes of T2 or the OG star wars on the big screen again would be more fun then modern claptrap.

Hopefully the cut budgets and debt load will convince movie makers to cut back on flashy effects and get back to genuinely good stories and characters.

Pointless nihlism is a contaigon worse then coronavirus ever was. Busted half arsed green text is a close second.

I dunno man, Disney has decided that movie-quality special effects have a place in tv series( see Mandelorian, and now Wandavision.) This is good, because most of Disney's movie ideas over the last year has been boring (Soul being the exception).

It's not going away, they're just lower the profit margins per season (versus a traditional movie with hundred of millions box office).

The good thing is, Netflix has already proven you can make enough cheap shows to make your loss-leaders less impactful.

Why would I go back to a movie theater, where I have to deal with other people? I would rather stay home and stare at big screen!

 

[PEnnn]

Now, why would any CEO in the US worry??

Even fired CEOs get a beautiful golden parachute, aka, millions when they leave, willingly or not.

 

[ckm88]

Made thousands off this stock. America ain't gonna let movies go away. It's an experience and past time.

 

[MasterMace]

Revenues dropped 88%, but (does math) their expenses rose 400%?

 

[mls0067]

Put $20 on this stock, now have $22.80. Keep talking Mr. CEO I'm taking it to the moon!! /s