Imax, the leading provider of immersive cinematic experiences, has reported impressive financial results in its second-quarter earnings report. The company experienced significant revenue growth both year over year and quarter to quarter, along with a notable increase in profits.
In Q2, Imax generated $98 million in revenue, a 38 percent increase from the previous year and a rise from $87 million in Q1. Additionally, Imax achieved profits of $8.4 million, a significant improvement compared to a $2.9 million loss in the same period last year, and a $2.5 million profit in Q1.
The success of Imax can be attributed in part to the release of highly anticipated films during Q2, specifically “The Super Mario Bros. Movie” and “Spider-Man: Across the Spider-Verse.” These movies quickly became the number one and two highest-grossing animated films of all time on Imax screens.
Imax CEO Richard Gelfond expressed his satisfaction with the company’s performance, stating, “Imax continues to be a winner in a dynamic global marketplace for entertainment, as demonstrated by our strong results in the second quarter. We again proved that Imax can drive results in virtually any business environment thanks to our global scale, asset-lite model, and diversified revenue mix across technology licensing and Hollywood and local language global box office.”
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Gross box office revenue from Imax locations in Q2 2023 reached $268.3 million, an 8 percent increase compared to the previous year. It is worth noting that Imax’s Q2 performance does not include the impact of two highly anticipated films, Christopher Nolan’s “Oppenheimer” and Tom Cruise’s “Mission Impossible: Dead Reckoning.” The release of these films is expected to contribute significantly to Imax’s Q3 performance.
Imax highlighted that the recent weekend was one of the best the company has ever experienced. Gelfond emphasized the paradigm shift in moviegoing, with Imax achieving strong double-digit market share through the release of several Hollywood and local films, led by the remarkable performance of “Oppenheimer.” The film achieved a 20 percent share of Imax screens, setting a new record. As of the end of June, Imax held a 3.3 percent market share of the global box office.
Looking ahead, Imax anticipates further growth and success. The company has already signed 84 new system deals this year, surpassing the 47 system signings achieved in all of 2022. Imax also emphasized upcoming releases such as “Dune 2” and the sequel to “Aquaman,” both of which were filmed specifically for Imax screens. Additionally, films like Apple’s “Napoleon” from Ridley Scott and “Killers of the Flower Moon” from Martin Scorsese are expected to enhance Imax’s future performance.
However, Gelfond acknowledged that the ongoing labor strikes by the Writers Guild of America (WGA) and the Screen Actors Guild (SAG) bring some uncertainty to the upcoming theatrical slates. While potential release date shifts are a concern, Gelfond expressed confidence that most of Imax’s second-half slate has already completed shooting. The company’s growing market share and established agreements with studios are expected to discourage major changes to the release schedules.
In conclusion, Imax’s Q2 earnings report demonstrates its continued success and growth in the global entertainment market. The company’s strong results, driven by blockbuster releases and its strategic approach, position it as a leader in providing immersive cinematic experiences. With a promising slate of upcoming films and a robust system signings pipeline, Imax looks set to continue its impressive performance in the coming quarters.
