Far from being written off as a novelty, the prospects for 3D in the entertainment world remain “extremely strong,” suggested RealD’s CEO Michael Lewis. RealD are best known for manufacturing 3D glasses which handle RealD’s optical lenses. Lewis told analysts, following the company’s Q3 results (to December 31st), that 8 out of the top 10 grossing movies were released in 3D, up from 6 in 2012.
He explained that 600 new 3D-enabled theatres were installed in particular in China, Russia and Latin America. “China alone saw an increase in 3D box office from 37 per cent of the total box office in calendar 2012 to 44 per cent in calendar 2013. Our performance in China was particularly notable during [Q3].”
China is also generating its own 3D product. “In fact, 3 of RealD’s top 4 3D films during the quarter in China were locally produced. The top-selling film for the region, Journey to the West, set a new box office record for local 3D films in China, reaching nearly $200 million in box office, almost double the top grossing local 3D film from last year.”
Q3 revenues were up 140 per cent at $55.4 million. Licensing revenues grew 17.4 per cent y-o-y with a gross margin of 68 per cent.