Imax Second-Quarter Earnings Rise on Hollywood Releases, Theater Signings
The giant-screen exhibitor, led by CEO Richard Gelfond, has continued to expand its global footprint through Asian deals with CJ CGV and Wanda Group.
TORONTO – Hollywood box office and theater signings led Imax on Thursday to report higher second-quarter earnings and revenue.
Earnings came in slightly below analysts' estimates, but other metrics came in ahead of expectations. In pre-market trading, Imax stock rose sharply.
The giant-screen exhibitor posted a profit of $11.8 million, compared with earnings of $11.03 million in 2012, on revenue up 17 percent to $82.3 million for the three months to June 30.
Production and digital remastering (DMR) revenue came to $26 million against a year-earlier $19.7 million, while Q2 gross box office from DMR titles of mostly Hollywood movies was $219.7 million, compared with $173.5 million in 2012.
As Imax expanded its global footprint, revenue from sales and sales-type leases and joint revenue-sharing arrangements were both up.
Imax recently unveiled a 35-theater agreement with South Korea's CJ CGV on top of Wednesday’s 130-screen deal with China's Wanda Group and subsidiary AMC Theatres.
"When you take into account the healthy backlog at the end of the second quarter, along with the substantial signing activity over the past few weeks, including last night's Wanda/AMC announcement, the result is a strong pipeline for continued network expansion over the coming years," Imax CEO Richard Gelfond said in a statement.
Imax executives were to talk to financial analysts about the latest results later Thursday.