Cinema Chain AMC's Stock Slides Nearly 27% to Record Low
Chen Juan
DATE:  Aug 03 2017
/ SOURCE:  Yicai
Cinema Chain AMC's Stock Slides Nearly 27% to Record Low Cinema Chain AMC's Stock Slides Nearly 27% to Record Low

(Yicai Global) Aug. 3 -- The price of shares of AMC Entertainment Holdings Inc. [NYSE:AMC] fell 26.92 percent yesterday to close at USD15.20 -- less than what they were initially offered for in 2013 -- after the company warned that its financial results may fall short of forecasts.

The movie theater chain, which is the largest in the US and is owned by Dalian Wanda Group, said that it will roll out a "cost reduction and revenue enhancement plan to better align operating expenses with theatre attendance." Overall North American box office revenue fell 3.3 percent in the second quarter as the number of moviegoers dropped, the firm said. The company may be experiencing growing pains after it acquired rival Carmike Cinemas in the second half of last year.

AMC projects total revenue of USD5.1 billion to USD5.23 billion for this year and a net loss of USD125 million to USD150 million. AMC is set to post its first annual losses since it floated, per the company's expected earnings.

The enterprise's stock set three records yesterday -- biggest decline in a day, largest daily turnover and lowest share price.

Dalian Wanda Group, which is owned by Wang Jianlin -- one of China's richest men, bought AMC for USD2.6 billion in 2012.

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Keywords:   Wanda,AMC