AMC CEO Adam Aron anticipates an increase in films released in 2023, touting “the path to an eventual recovery from the pandemic”

On the road to recovery AMC Entertainment Holdings Inc. an increase in the number of films released in theaters this year will help, according to CEO Adam Aron, who noted that 35% more films will be released in 2023 than in 2022. The theater industry is trying to recover from the COVID-19-related slowdown.

“Articles citing so-called experts who think streaming doom theaters are SO fundamentally wrong,” Aron tweeted Friday. “So wrong. Our problem is that major studios released far fewer films in 2021 and 2022 than in the pre-pandemic years. Fortunately, compared to 2022, the number of films has grown by about 35% in 2023!”

amc amc,
-2.96%
stocks ended Friday’s session down 8.6% from the SPX of the S&P 500,
+0.35%
an increase of 0.22%. The company’s shares have fallen 55.1% over the past 12 months, outpacing the S&P 500’s 7.4% drop.

Related: AMC’s new ticket prices based on seat location are not the answer, the research organization says.

“To put it mildly, I previously said that the number of films released in 2023 will be 35% more than in 22nd. This is SO important to AMC’s path to an eventual recovery from the pandemic,” he added in a follow-up tweet on Saturday.

Aron also talked about his stake in the movie theater chain and its AMC Preferred Equity APE.
-2.72%
units Friday. He tweeted last month that he is AMC’s largest retail shareholder.

“It continues to surprise and embarrass me that some suggest that I am not on the side of retail investors,” he tweeted. “I will repeat this over and over. I own or have an economic interest in millions of AMC shares and APE units. I am a retail shareholder. Of course I’m on your side!”

See: AMC sells stake in Saudi joint venture and moves to licensing partnership

Aron sold shares of AMC Entertainment Holdings Inc. over $40 million between November 2021 and January 2022.

The CEO, who has led the theater chain since 2016, is actively using Twitter to communicate with the retail investors who have turned AMC into a meme phenomenon. A fan of memes and quirky tweets, Aron has amassed over 291,000 followers on the platform.

Over the past two years, AMC has been on a rollercoaster ride, going from a beleaguered victim of a pandemic to a meme phenomenon. The company used the surge in its share price to enter the equity and debt markets, raising $917 million in January 2021.

Related: Converting AMC to APE is a “massive” opportunity to write off debt and spur expansion, analyst says.

In a SEC filing last week, AMC announced it had bought $365 million worth of debt since the start of 2022.

“We still have a lot of work to do in this regard, but you know the old saying: “Win ​​the race slowly and steadily,” Aaron tweeted.

In November, AMC posted its 12th consecutive quarterly loss. The company’s sales totaled $968.4 million compared to $763.2 million in the same period last year. AMC ended its fiscal third quarter with $5.325 billion in debt and $684.6 million in cash and cash equivalents.

Now read: Ticket sales for Avatar exceeded expectations, AMC CEO Adam Aron said.

The company is fighting to eliminate its debt burden. In a SEC filing last month, AMC announced a special shareholder meeting to increase AMC’s authorized shares from just over 524 million to 550 million and authorize a 1-to-10 reverse split of the company’s common stock, converting APE into shares. ordinary shares. According to the SEC, the EGM has been scheduled for March 14, 2023.

AMC describes itself as the largest film company in the world, with approximately 950 theaters and 10,500 screens worldwide.

Of the seven analysts surveyed by FactSet, three have a hold rating and four have a sell rating for AMC.

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