AMC Networks, the American multinational basic cable television channel, has been severely impacted by the COVID-19 pandemic and is now facing a critical financial situation. On Monday, the company reported a significant decline in revenue, with its third-quarter earnings dropping to $119.5 million, a sharp 91% decrease from the $1.3 billion reported in the same period in 2019. Losses amounted to $905.8 million, or $8.41 per share, compared to a loss of 53 cents per share in the previous year.

In an effort to mitigate the financial fallout, AMC disclosed it had raised over $80 million through the sale of its Baltic theaters located in Latvia, Lithuania, and Estonia. Additionally, the company renegotiated its debts, theater leases, and interest payments, and raised $900 million in capital through new debt and equity offerings.

Despite these moves, the company reported that only 539 of its 600 domestic locations, and 261 of its 358 international locations, have resumed operations. Attendance has remained low due to COVID-19 restrictions, as many consumers have turned to streaming services rather than visiting theaters. Theater closures in several European countries, driven by surging coronavirus cases, have also contributed to the reduced footfall.

AMC President and CEO Adam Aron acknowledged the pandemic’s heavy toll on the theater industry. In a statement, Aron said, “The impact of the global pandemic on the theatrical exhibition industry was again evident in our third-quarter results.” He added that despite the challenges, AMC is focusing on strengthening its liquidity, reducing operating and capital expenditures, and safely reopening its theaters.

AMC is now seeking additional funding to cover its pandemic-related losses. Last month, the company raised $41.6 million by selling 15 million shares and is now looking to sell an additional 20 million Class A shares to generate up to $50 million. In a recent SEC filing, the company confirmed its plans to raise more capital through equity sales.

In response to the shift in consumer behavior, AMC is also considering moving into the streaming market. Aron emphasized that the company is exploring new models, acknowledging that streaming is becoming increasingly important. He added, “We believe a combination of theatrical releases and streaming could optimize profitability for both AMC and movie studios.”