AMC Theatres, the world’s largest cinema operator, lost $561 million in its most current quarter as income collapsed simply because of the COVID-19 stress.

The Leawood, Kan.-based mostly exhibitor, which is owned by China’s Dalian Wanda Group, has been hammered by the coronavirus crisis, which has stored is 630 U.S. theaters shut given that mid-March. The company’s income was $eighteen.9 million for the duration of the three months that finished in June, down 99% from the very same period a yr ago, the company mentioned Thursday.

Second quarter earnings ended up even even worse than Wall Avenue anticipated. AMC lost $5.38 a share, in contrast to the common $four.34 for every-share decline predicted by analysts polled by FactSet.

AMC’s inventory was little-altered in right after hrs buying and selling, right after closing at $four.fourteen.

“It ought to be no shock to anyone that with our functions shut the world around, and almost no revenues coming in the door, this was the most complicated quarter in the one hundred-yr heritage of AMC,” mentioned Main Government Adam Aron.

The earnings launch comes shortly right after AMC and Common Photographs made a historic deal to shorten the theatrical window for certain motion pictures to as little as 17 times, in contrast to the common ninety times for huge Hollywood movies. Subsequent the window, Common can provide its movies for $twenty rental video on-demand, with AMC will using a slash of the electronic video income.

Rivals, together with Regal Cinemas’ dad or mum organization, Cineworld, have blasted the deal, which they say could undermine the theatrical organization. “We do not see any organization feeling in this model,” mentioned Cineworld CEO Mooky Greidinger in a assertion.

Aron mentioned the new model will increase AMC’s organization by producing positive the organization is compensated, and by growing the industry for movies by producing it much easier for Common to make cash from its non-blockbuster releases. Better studio gains will direct the the greenlighting of more theatrical movies, he argued.

“We now will be slash in, bundled and compensated when Common motion pictures go to the home early,” Aron mentioned.

In the course of the community wellness crisis, AMC has moved to increase its stability sheet by restructuring $2.6 billion in personal debt last thirty day period. The organization raised $300 million in more money in purchase to assistance it withstand the shutdowns.

It remains unclear when AMC will be equipped to fully reopen its circuit in the U.S. Theater owners have been waiting around for new Hollywood motion pictures to demonstrate before they return to standard organization functions. Following shifting the launch day for “Tenet” many periods, Warner Bros. lately mentioned it would launch the Christopher Nolan film internationally late this thirty day period, followed by a staggered domestic launch in certain U.S. cities.

Walt Disney Co. on Tuesday stunned the sector by announcing that its reside-motion film edition of “Mulan” would largely skip theaters and be accessible on streaming services Disney+ for a $30 price, beginning Sept. four. The movie will perform in theaters only in nations around the world the place Disney+ is not accessible and the place cinemas are open, the Burbank-based mostly organization mentioned.

Aron on a convention phone with analysts mentioned that a third of its theaters in Europe and the Middle East are currently open and that the extensive greater part will be open in the upcoming two weeks. Such as worldwide theaters, AMC’s around the world footprint offers more than 1,000 cinema spots.