AMC Entertainment (AMC) shares were marked to open more than 25% lower Wednesday, after the U.S's second-largest movie theater chain said it expected a steeper-than-expected loss in the second quarter.
Shares are expected to open at $15.50 on Wednesday, after closing at $20.80 on Tuesday, extending a three month loss of 30% and a year-to-date decline of more than 60%.
AMC said late Tuesday that it expects total revenue for the three months to the end of June to be around $1.2 billion and a net loss of between $178.5 million and $174.5 million, or $1.36 to $1.34 per diluted share. It reports its second quarter earnings on Aug. 7.
The loss is attributed to a $202.6 million pre-tax impairment charge related to AMC's National CineMedia, LLC investment, because the market value of its investment in NCM declined significantly below its carrying value. The expected results are also reflect a 4.4% fall in U.S. box office
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