3D technology company RealD says that despite some challenges over the past couple of quarters, and since the success of Hollywood blockbuster Gravity, its 3D licensing revenues have recovered and would be further improved by the upcoming 3D release of Lionsgate’s Insurgent, and to be followed by other high-profile releases including Avengers: Age of Ultron movie as well as the first of the new Star Wars releases.
RealD’s CEO Michael Lewis told analysts following the company’s financial statement that new 3D theatres in China, Russia and Latin America were also helping sales growth.
“Q2 revenues were $47.4 million, which included licence revenues of $31.8 million and product and other revenues of $15.6 million,” said CFO Drew Skarupa. “Licence revenues increased 3 per cent from the prior year quarter primarily driven by 12 per cent increase in international license revenues standing from 27 per cent growth in China. International license revenues grew to 67 per cent of total licence revenues, which is on par with the industry average versus 61 per cent in the prior year quarter.”
Skarupa said that RealD earned about 5.1 per cent in licensing revenues from an estimated $680 million of overall box-office revenues. He explained that 3D cinema installations were running at a rate of some 400 screens per quarter, with about 30 in North America and the balance internationally.
RealD last month had a $12 a share take-over offer from hedge fund Starboard Value LP, which was rejected. Starboard owns some 10 per cent of RealD.