Yahoo Finance AMC ‘Optimistic’ on Demand for Q4 After Cineworld Warns on Liquidity
By Yasin Ebrahim
Investing.com -- AMC Entertainment (NYSE:AMC) said it remains “quite optimistic” on demand for the fourth quarter and pointed to a strong balance sheet in the wake of the rival movie chain Cineworld’s recent warning on liquidity.
AMC was down about 3% in aftermarket hours.
Cineworld, the world’s second-largest movie theater circuit, warned earlier that liquidity will suffer a hit from low levels of admissions that are expected to continue until November 2022.
The announcement sparked some concerns that other movie chains may also face liquidity headwinds, but AMC said that a “weak film slate in the third quarter of 2022" is expected to be followed by increased demand in the fourth quarter and 2023.
The movie chain also pointed to the more than $1 billion of liquidity on its balance sheet from cash raised in calendar years 2020 and 2021 that will help soften the impact of a weaker Q3.
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