Founded in 1920, AMC is one of the largest movie theatre chains in the United States. Since the advent of the Covid-19 pandemic, the group's business has been in a slump. In the second quarter of last year, it posted huge losses. Over the one-year period: that is, in Q2-2021, the US entertainment giant has managed to reduce its losses. This illustrates a gradual return to a better level.
For the entire second quarter of 2021, the AMC Group achieved a revenue of $445 million compared to $19 million in the same period last year. So the quarterly turnover has increased significantly in a year. To recall, in Q2-2020, the effects of the pandemic had weighed on the company's business.
The Covid-19 outbreak had led to the closure of most of the establishments during Q2-2020. On the other hand, Q2-2021 revenue came in well above market expectations of $382 million. For the quarter as a whole, the theatre operator posted a loss of $344 million (or 71 cents per share).
A year earlier, the group posted a loss of $561 million (or $5.38 per share). The American movie theater colossus did better than the market expected in its estimates. It had expected a loss of 94 cents per share in the current quarter.
During the second quarter of 2021, AMC Group benefited from the reopening of movie theaters. Over the entire three-month period, it welcomed more than 22 million moviegoers. By the end of July, the number of theaters open was estimated at more than 900, including 593 in the United States and 335 internationally.
As a reminder, the American entertainment giant has more than 10,500 theaters worldwide. They are spread over about 950 theaters. In addition, back in theaters, moviegoers were particularly interested in the company's snack and beverage offerings.
This is a segment that ensures good profitability for the company. On the other hand, AMC says that it has signed a partnership with Warner Bros. This collaboration is expected to promote the release of its films on an exclusive basis over a 45-day period. On the other hand, the group has announced its intention to accept new payment methods by the end of this year. Bitcoin is one option that may also be possible.
After the impact of the health crisis, AMC is taking a number of actions as part of its turnaround. Raising funds is one solution adopted by the group. At the end of the second quarter of 2021, the company's liquidity stands at $1.8 billion.
Taking into account the unused revolving credit lines, the group's cash comes out to more than $2 billion. This shows that the movie theater giant has a fairly strong financial capacity that could allow it to show resilience in the face of the health crisis.