Imax predicts return to pre-pandemic box office this year on China recovery, strong movie talk; Q4 sales, profit decline

Imax said today that it expects to return to its pre-pandemic gross of $1.1 billion by 2023, although it reported revenue of $98 million for the fourth quarter of last year, a 10% decline from the previous year.

Earnings per share fell from 31 cents to 19 cents.

CEO Rich Gelfond attributed the drop to China’s box office, which is vital to Imax and was still in recovery mode until late last year. Avatar: The Way of Water The day and date opened in mid-December in China, where the market has soared since then, he said, “a 180-degree turn in just a few months.” The film, the first-ever highest-grossing Imax release at more than $253 million, is actually a re-opening and a boost for the Chinese market, Gelfond said in a conference call.

The company also saw a strong $61 million in local language box office during the Chinese New Year holiday, up 72% from 2022. This segment accounted for 17% of total sales last year and is expected to be higher this year with more releases. says Gelfond.

For the full year 2022, Imax said it captured its largest ever share of both the global (3.3%) and domestic (4.4%) box office. The global box office grew 33% year-over-year to $850 million.

In 2023 so far Ant Man & The Wasp: Quantumania earned $12.2 million at the Imax box office for the four-day President’s Weekend – 10% of the total gross in North America.

The company secured multi-system deals for seven new sites in Japan and ten in Indonesia this year.

Imax shares have risen this year as it appears clear that the company will benefit from the ongoing post-pandemic shift to premium films and alternative content. Wedbush Securities analyst Alicia Reese recently included Imax in the company’s list of best ideas, calling it “the best way to play the cinema boom of 2023.”

“The first ‘Avatar’ took Imax to a new level and we see early signs that the sequel will drive the growth of our business,” said Gelfond. The film is the company’s biggest release to date in nearly 50 international markets, many underrepresented with Imax systems, and which we have identified for strategic expansion. Combined with a strong, consistent Hollywood roster and our growing local language content portfolio in priority markets, we see a clear opportunity to further expand and diversify our global footprint this year.”

Of avatar And ant man China receives both mainstream releases in China and Chinese-made blockbusters such as The Wandering Earth 2 and Full River Red, which attract massive audiences. China is rapidly establishing itself as one of the world’s largest cinema markets,” he said.