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Shares of AMC Entertainment plunged a dramatic 27 percent after the closing bell on Tuesday after the movie exhibitor warned investors it would soon be reporting a quarterly loss.
AMC will report a loss of up to $178.5 million, partially due to a pre-tax impairment charge related to its investment in National CineMedia, the in-theater advertising company, and partially because the U.S. box office declined about 4.4 percent in the second quarter compared with the same period last year.
The theater chain also said Tuesday it has initiated “cost reduction and revenue enhancement” initiatives, including reducing administrative costs for the rest of this year and next.
The company said it expects to achieve at least $30 million in adjusted earnings through the various initiatives.
On a per-share basis, AMC will lose up to $1.36 in the second quarter while it earned 24 cents a year ago. Revenue, though, should rise to $1.2 billion from $764 million last year.
The stock was up 2 percent to $20.80 during the regular session on Tuesday, but sunk below $15.50 after the closing bell.
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