Pink's Bottom Line on Media, Money and Sports

Movie theaters, a major IPO and horse racing

In today’s newsletter, I discuss movie theaters, a major IPO and horse racing.

MEDIA: AMC Theaters

AMC Entertainment Holdings, which owns and operates AMC Theaters, the world’s biggest movie chain, yesterday reported quarterly earnings that were, not surprisingly, weaker than what they reported in the third quarter last year. (Click here to read AMC’s latest earnings press release.)

The company’s business faces a triple whammy due to the impact of the coronavirus pandemic.

First, theaters have been forced to shutter temporarily or to limit attendance.

Second, some moviegoers are shunning theaters because they are indoors.

Third, studios are releasing fewer movies because of potentially sparse attendance in theaters.

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AMC Entertainment Holdings President and Chief Executive Officer Adam Aron likened the company’s current situation to war in AMC’s earnings call yesterday.

“In our industry, the gravity of our situation puts us all in almost a war-like position of resolve and determination,” said Aron.

Indeed, theaters will have to battle the impact of the coronavirus for the foreseeable future, but I expect movie chains like AMC to adapt and to weather this storm.

(Full disclosure: I found the comments from AMC’s Aron on Aiera, an event access and data monitoring platform company, where I serve as an advisor.)

MONEY: Ant Financial

While the initial public offering (IPO) market in the United States has been red hot this year, it’s the potential IPO of China’s Ant Financial that’s capturing the attention of many investors.

However, the public listing of Ant Financial, which was slated to debut on the Shanghai and Hong Kong stock exchanges later this week and which could have been the largest IPO in history, has been put on hold.

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The suspension of the IPO follows meetings earlier this week between Ant Financial management and Chinese financial regulators.

I expect the Ant Financial IPO will eventually proceed though it does show that Chinese regulators are watching this one closely.

SPORTS: Breeders’ Cup

While most of the world focuses on the horse race that is the US presidential election between Donald Trump and Joe Biden, one of horse racing’s biggest events, the Breeders’ Cup, will take place this weekend at the Keeneland track in Lexington, Kentucky.

Notably, all three winners of this year’s Triple Crown races are participating in the Breeders’ Cup, so it should be a compelling race though there will be no spectators in attendance due to the coronavirus.

Tiz the Law, who won the Belmont earlier this year, is the favorite for Saturday’s race at 3-1, and Authentic, who won the Kentucky Derby, is 11-2 to win, according to odds from US Racing.

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Swiss Skydiver, the filly who beat Authentic in a photo finish to win the Preakness, is at 8-1 to win the Breeders' Cup, according to US Racing odds.

In October, Swiss Skydiver ran the fastest Preakness since 1973 — that's when the legendary Secretariat won the event on the way to a Triple Crown.

I expect Swiss Skydiver to win the Breeders’ Cup this year, narrowly defeating Authentic again like she did in the Preakness.

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Jeremy Pink is former CEO of private-equity backed Broadcast Sports International where he helped lead the company to a successful sale and exit during his tenure there. He is also a former CNBC television executive in New York, London and Singapore. Jeremy currently serves as an advisor to companies in media and financial tech.

The information contained in this communication is strictly for general informational and entertainment purposes and is not meant to be construed as financial, investment, tax, or legal advice. This communication is not a solicitation to buy or sell any securities. I am not a financial advisor or offering professional advice of any kind. Users should not act upon the content or information found within this communication without first seeking professional advice appropriate for their individual situation. Decisions based on information contained in this communication are the sole responsibility of the user, and use of this communication and its contents constitutes an explicit understanding and acceptance of the foregoing disclaimers.

(Newsletter Editor: Karina Pink)