AMC CEO On Ticket Sales Since Reopening: 'We Are Not An Airline'
More than 1 million people have gone out to watch a movie since AMC Entertainment Holdings Inc (NYSE: AMC) reopened some of its theaters, and the early results are very encouraging, AMC CEO Adam Aron said on CNBC's "Squawk Box."
What Happened: AMC opened 100 theaters three weeks ago, and 75% of theaters will be open for the upcoming weekend, Aron said.
The company is celebrating a victory, as many customers have seen firsthand how AMC offers a clean and safe environment, the CEO said.
The company invested millions in high-tech safety solutions, including MERV-13 air filtration and electrostatic sprayers, he said.
Why It's Important: Theaters continue to operate at limited capacity. Even at 33%, AMC is in no danger of shutting down, Aron said.
Part of the theater industry isn't fully understood by the public, the CEO said: in 2019, the company sold 350 million tickets worldwide, and this accounts for just 17% of total seats available.
"We are not an airline or a Broadway theater that traditionally runs full."
What's Next: The ultimate success of the theater industry relies on more movies coming out so that consumers have a reason to show up, Aron said.
The company is looking beyond the next few weeks and anticipating a "recovery" in 2021, the CEO said.
AMC Price Action: AMC shares were trading down 2.15% at $6.13 at last check Thursday.
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