After Regal owner Cineworld Group warned of a decline in theater admissions through November 2022 amid a summer slump, AMC Theaters CEO Adam Aron said he is optimistic about admissions.
“Yesterday, Cineworld, the world’s second largest cinema circuit, released a public statement predicting low admission levels through November 2022, which is expected to negatively affect its short-term liquidity position,” said Aron. Announcement on Thursday.
He reiterated earlier guidance that “the list of Hollywood movies in Q3 2022 should be relatively weak.” But Aron added: “However, we remain quite bullish about growing demand for our theatrical portfolio in Q4 2022 and calendar year 2023.”
Cineworld’s warning on Wednesday marked a change in stance after the exhibitor said at an analyst presentation in March that the company “is now well positioned to benefit from a strong slate of films in 2022 and beyond.”
After a strong recovery at the box office in the first half of 2022, major exhibitors are looking for a boost that could stagnate in the second half due to the absence of the big Hollywood marquees after the show. Top Gun: Maverick s Minions: The Rise of Gru.
Cineworld, like AMC Theatres, has a mountain of debt to contend with as it emerges from the pandemic, and the UK exhibitor said it is exploring unspecified strategic options to meet its liquidity needs.
For his part, Aron, aware that investors are eyeing the top exhibitor’s balance sheets due to threats to profitability, said AMC ended Q2 2022 with more than $1 billion in liquidity following new growth. of cash in 2020 and 2021 .
“Our new AMC Preferred Equity bond, which begins trading on the New York Stock Exchange on Monday, August 22, 2022, should also make us a much stronger company… Therefore, we are confident in the future of AMC” , added Aaron.
Source: Hollywood Reporter
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
