CEO: AMC Theatres in PVOD Discussions With Other Studios; Q2 Revenue Plummets 98.8%, Net Loss Skyrockets to $561 Million

On the heels of its landmark premium VOD agreement with Universal Pictures, AMC Theatres is reaching out to other studios in hopes of securing similar revenue-sharing deals, CEO Adam Aron disclosed Aug. 6 on the second-quarter (ended June 30) financial disclosure. AMC will share with Universal in all PVOD movie rental revenue 17 days after a title’s theatrical debut.

“AMC is an innovator and we are embracing change that we are confident will be financially beneficial for AMC shareholders,” Aron said in a statement. The CEO did not disclose the names of other studios AMC is in discussions with.

On the fiscal call, Aron said he had no issues with Disney removing Mulan from theatrical distribution to PVOD on Disney+. Calling Disney “no bigger friend” to AMC, Aron said the exhibitor and media giant had to do what’s in the best interest of their fiscal position during the pandemic.

“[Disney] provided us with more content last year than any other studio in the world.” Aron said. “As both companies do businesses, we will thrive.”

As expected, the world’s largest movie exhibitor saw its financial quarter decimated by the ongoing coronavirus pandemic that has seen the majority of its 11,000 screen shuttered since mid-March.

With the chain generating just $18.9 million in revenue, which was down 98.8% from revenue of more than $1.5 billion in the previous-year period, AMC reported a net loss of $561.2 million — the worst in the company’s 100-year history.

“A once in a century event has transformed 2020 into a brutal year,” Aron said in a statement.

Indeed, the company spent the bulk of the quarter restructuring more than $2.6 billion in long-term debt. Aron said more than 130 theaters are operating in Europe and the Middle East — more than one-third AMC’s international theaters. Aron expects all screens to resume operations in the next two to three weeks.

“Theatrical exhibition has always been resilient, and we are confident that at AMC we are taking the right steps to emerge from this crisis and to thrive once again as the leader in our industry,” he said.

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