AMC Theaters (NYSE: AMC), the largest movie theater chain in the U.S., along with rival Cinemark have revealed they have no intention of closures. Despite continuous postponement of several blockbuster release dates, the chains have chosen to keep their doors open. AMC shares were up over 3% in premarket trading.
Both chains announced Tuesday that 80% of their U.S. locations were currently open and would remain so despite the ongoing global pandemic. AMC Shares rose about 1.5% Tuesday and Cinemark shares skyrocketed over 6%.
The decision comes just a day after competitor Cineworld, the second largest global cinema operator, revealed it would be closing all of its U.S. and U.K. theaters. With the postponement of films such as “Black Widow,” “Wonder Woman 1984,” and “No Time to Die,” Cineworld stated it would be spending more money if open, than it would closed.
Nevertheless, there are several upcoming releases, including “The War With Grandpa” starring Rober De Niro, “Yellow Rose,” “Let Him Go”, “Freaky” and “The Comeback Trail” that AMC has lined up to showcase.
“Some of our best partners like Disney, with its much anticipated “Soul”, and Universal with “The Croods: A New Age”, have new movies scheduled for theatrical release over the next month and a half,” AMC Chief Executive Officer Adam Aron said.
“Cinemark’s reopening plan was designed with multiple contingencies in place to ensure we are able to be nimble and react as needed to this ever-changing environment,” the company said in a statement.
Additionally, as a means of increasing earnings, AMC finalized an agreement with Universal in July that allows it to play a movie as little as 17 days within theaters before being able to release it on premium video on-demand. AMC receives a portion of the revenue from PVOD sales.