Imax Quarterly Revenues, Profit Rises on Premium Screen Gold Rush

Christopher Nolan’s The Odyssey, shot entirely on Imax film cameras and seen by cinema-goers on Imax premium large format screens, helps explain the lift the film technologies company received from Hollywood’s premium screen gold rush with its second quarter financial results out on Thursday. Imax had revenue of $102.8 million in the quarter, up 12 percent from $91.7 million in the year-ago period, while net income rose 30 percent to $15.9 million, compared to a year-earlier $12 million. The adjusted earnings per-share hit 43 cents, up 65 percent against a year-earlier 26 cents. As Imax navigates a post-pandemic box office rebound for the Hollywood studios, the company’s main movie suppliers, the film technologies company is spearheading a push by major exhibitors into in-demand premium screens and movies shot with proprietary Imax cameras like The Odyssey. And The Odyssey is proving as transformational for Imax on its giant screens as James Cameron’s Avatar franchise was in earlier business cycles, both in global audience and theatre network sales. That’s feeding through to Imax’s bottom line. Second quarter content solutions revenues — or business from agreements with the major studios and filmmakers rose 2 percent to $35 million, driven by international markets growth, excluding China. The latest quarter’s technology products and services revenues, or the proceeds from the sale, lease and maintenance of Imax’s theater systems network, rose 16 percent to $65 million, driven by higher system installations, renewals and rental revenues. Imax installed 38 theaters in the second quarter. Imax also has momentum in the current third quarter after Universal’s The Odyssey delivered a record worldwide opening weekend for Imax at $52 million in box office and around 20 percent of the global first weekend ticket receipts. Richard Gelfond, CEO of Imax, on a morning analyst call was effusive in his praise for Nolan’s latest movie on his screens. “The results for The Odyssey have been nothing short of tremendous. Odyssey delivered $52 million in its global opening — the biggest global opening weekend in our history on a like-for-like basis, given the film has yet to open in China, Japan, and South Korea. That amounted to a staggering 20 percent share of the film’s worldwide debut, on less than 1 percent of total screens, he reported. Gelfond on the call discussed the future of Nolan’s Matt Damon and Zendaya-starring tentpole on Imax screens, given metrics like ticket pre-sales and social media buzz. “The Odyssey will play in Imax 70mm locations for months — and we’re already recording sellouts at these locations deep into the film’s run.” After Nolan’s latest film thrived on Imax screens, Gelfond talked about other Hollywood directors and major studios following his lead. “Obviously we’re getting good feedback, but we’re not really leaving it at that. We have targeted goals that we’re trying to make as we roll out our response to Odyssey,” he said.