Theater chain AMC in need of more blockbuster movies, shares fall

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Theater chain AMC in need of more blockbuster movies, shares fall
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AMC Entertainment Holdings Inc said its third-quarter loss widened, with the theater chain operator burning through more cash to keep its 950 theaters running as fewer blockbuster releases reduced footfall in cinemas.

An AMC theatre is pictured amid the coronavirus disease pandemic in the Manhattan borough of New York City, New York, U.S., January 27, 2021. REUTERS/Carlo Allegri/File Photosaid its third-quarter loss widened, with the theater chain operator burning through more cash to keep its 950 theaters running as fewer blockbuster releases reduced footfall in cinemas.

"I think their announcement that they began selling some of their announced 425 million APE shares at such a low per-share price speaks to their cash needs ," said Wedbush Securities analyst Alicia Reese.Finance chief Sean Goodman said operating cash burn for the quarter was a negative $179.2 million and was hurt by a "relatively quiet box office in August and September."

"At this point, there is only one topic that should be on the top of all minds and the tip of all tongues. It's not the coronavirus, it's not streaming, it's not windows. It is this: movie theater operators need more movies," he said.

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