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Chinese-controlled AMC <AMC.N>, the United States' largest
chain, said on Thursday it was postponing reopenings across the
country as COVID-19 cases grow at an alarming rate in some
states.
Britain's Cineworld, which has also delayed the reopening of its
U.S. theatres to mid-August, has reopened in Europe and plans to
restart main UK operations at the end of July, but analysts
worry that could be delayed and predict limited ticket sales.
Shares in Cineworld, already headed for their worst-ever yearly
fall with an 80% plunge, were down 9% at 48.3 pence by 1103 GMT.
"Until the total relaxation of social distancing rules, the
pressure on finances will be quite significant, which suggests
more job losses and cinema closures in the months ahead," CMC
Markets analyst Michael Hewson said.
J.P.Morgan analyst Alexander Mees estimated Cineworld would burn
around $50 million per month while cinemas remain shut.
Rating agency Fitch last week said the company's abandoning of
its purchase of Canadian chain Cineplex and increased debt
facilities could help it withstand another 9 to 10 months of
cash-burn.
The delay of "Mulan" follows the cancellation of the release of
Christopher Nolan's thriller "Tenet" this week. Paramount
Pictures also delayed "Top Gun: Maverick" until Dec. 23, 2020,
while several other big-budget releases have been pushed back.
"Cinema-going will not be back in full swing until there is new
content to show," Mees said.
"The risks are high ... as we do not know at this stage whether
customers will come back in the same numbers. It will also take
a few years to work off (Cineworld's) debt balance."
(Reporting by Muvija M in Bengaluru, additional reporting by
Tanishaa Nadkar; Editing by Saumyadeb Chakrabarty)
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