AMC Shares Fall as Rival Cineworld Closes its Movie Theaters

Shares of AMC Entertainment were collapsing on Monday in morning trading after Wall Street learned that rival Cineworld, which owns Regal Cinemas, said it would close its U.K. and U.S. theaters after the newest James Bond film pushed its release date again.

Cineworld CEO Mooky Greidinger told Sky News that the closures could last more than two months.

It was this past Friday that “No Time to Die,” the newest James Bond flick, was pushed to an April 2021 release date. With coronavirus cases surging in the U.S. and the U.K., the outlook for the movie theater industry is not looking too hot.

Loop Capital Markets has now revised its estimates for the domestic box office with analyst Alan Gould projecting that ticket sales are expected to plunge 85% in the fourth quarter. This is a much steeper decline that its prior forecast of sales down just 25%. The third-quarter box office is expected to drop by an additional 10% from the firm’s forecast, Gould said.

“We also question if the weakness will bleed into 2021,” wrote Gould.

Movie studios have delayed dozens of big releases over the past six months including blockbusters such the superhero movies Wonder Woman 1984 and Black Widow along with A Quiet Place Part II and Candyman.

In a statement, Greidinger emphasized that “there has been no evidence to date linking any COVID cases with cinemas.”

“The prolonged closures have had a detrimental impact on the release slate for the rest of the year, and, in turn, our ability to supply our customers with the lineup of blockbusters they’ve come to expect from us,” Greidinger said. “As such, it is simply impossible to continue operations in our primary markets.”

AMC shares have dropped 41% so far this year.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.