Shares of movie theater operators are rallying after an industry group, the National Association of Theater Owners, or NATO, lobbied Congress to consider relief efforts after the coronavirus fallout. CORONAVIRUS CLOSING: Movie theater chains across the U.S have been forced to close their doors to prevent the spread of coronavirus. BAILOUT PLEASE: The trade group that representing movie theaters in the U.S., the National Association of Theater Owners, has asked for immediate help on Thursday morning. The organization, which represents most of the industry’s cinemas, said that it’s asking for immediate federal help for its chains and its 150,000 employees. The theaters are requesting loan guarantees for exhibitors, tax benefits for employees and funds to compensate for lost ticket sales and concessions. NATO warned that the movie theater industry is “uniquely vulnerable” to the crisis, and needs assistance to weather a near-total shutdown of two to three months. “This is an unprecedented challenge to the business,” said John Fithian, CEO of NATO. “We’re looking to Congress and White House to understand this is a cultural institution where people gather.” Fithian didn’t give a specific dollar amount for what the industry is seeking, but said theaters could be saved for a fraction of what the airline industry is requesting — The White House has proposed $50B for the airlines. For less than the cost of one airline company, Fithian said, movie theaters could be kept afloat. “We want our policymakers to know that at the end of this thing, when people have been cooped up in their house for several months, they’ll need a break to go out and do something collectively that’s affordable and fun and away from what they’ve just been through,” he said. “But we still need to be viable.” PRICE ACTION: Shares of companies in the movie theater space are trading higher, including AMC Entertainment (AMC), Marcus (MCS), Cineworld Group (CNNWF), Imax (IMAX), and Cinemark Holdings (CNK).
previous post