What happened
Two weeks ago, cinema manager AMC Entertainment Holdings (NYSE: AMC) announced plans to reopen “more than 100” theaters on August 20. Last night, the company confirmed that this grand reopening is underway – and an additional 170 theaters will reopen today.
AMC shareholders cheered, and by 10 a.m. EDT, the stock was already up 9.8%.
Image Source: Getty Images.
So what
It has been a long wait for AMC, which has closed theaters across the country in response to government-mandated domestic mandates designed to control the spread of COVID-19. Initially, the company expected that closures would last only six to 12 weeks, but as it turned out, this has been a five-month hiatus for AMC.
Well what
In its announcement, AMC described its first weekend of renewed operations at 100 theaters as “successful” – although the company did not specify the number of filmgoers returning to the theater, or how much they spend, Still, in a recession, any revenue is likely to be preferred over no revenue, and in order to maximize the return on their “millions”, it is committed to introducing “high-tech solutions for sanitation and disinfection including electrostatic sprayers, HEPA vacuum cleaners and MERV 13 air filters” in their theaters, AMC will reopen 170 more locations today, which the company says will bring its total open theaters to 300.
By September, 400 theaters, about two-thirds of AMC’s nearly 600 American theaters, should be up and running.
What makes these theaters profitable again – that’s everyone’s guess.
