IMAX reports 30.5% increase in China box office
October 29, 2018
By Chris Forrester
China continues to be robust and growing market for giant screen operator IMAX in terms of box office revenues, which were up 30.5 per cent for its Q3 (y-o-y) and “driven by compelling slate of Hollywood and Chinese local language blockbusters,” according to IMAX.
Additionally, IMAX told analysts that it had converted more than 200 of its existing cinema systems to its latest Laser product.
Overall revenues for Q3 were $82.1 million, and a gross profit of $42.2 million. During the 3-month period IMAX installed 37 systems, 36 of which were at new locations. The total IMAX network is now at 1443 systems, and the company’s backlog is for another 635 theatres (up 90 installations on the same point in 2017).
“Our momentum from the first half of 2018 continued into the third quarter. Compelling blockbuster content from Hollywood and China, coupled with our ongoing focus on controlling costs helped drive our third consecutive quarter of operating margin expansion,” said IMAX CEO Richard Gelfond.
“Looking ahead, we expect many of the factors contributing to our strong performance this year to benefit the Company into 2019 and beyond including the rapidly evolving media landscape. The convergence of streaming and traditional media platforms creates interesting opportunities for IMAX.”
Gelfond also highlighted the changes taking place with some major studios. “It’s no secret that rapidly change in consumer habits are causing media companies to take a hard look at their businesses and how they adapt. The industry is evolving to a point where traditional streaming companies are increasingly getting into the blockbuster business and traditional studios are beginning to develop some streaming offerings.”
“As much uncertainty as this convergence brings to many businesses in the industry, we have worked hard to position IMAX squarely at the intersection of this convergence with the unique opportunity to influence and benefit it from it.”
“We are increasingly seeing content creators seeking to attract top filmmakers, eventise the launch of new content and broaden the consumer reach of that content. Our 1,400-plus theatre network across nearly 80 countries affords filmmakers the opportunity to launch their content in a highly-differentiated, premium format. We are in active discussions across these converging platforms and believe IMAX has a unique opportunity to influence the emerging trends in our industry and be a direct beneficiary of the evolving landscape,” he added.