The impact of Cineworld Bankruptcy on Imax is mitigated by the nature of the leases, by the presence in the highest-grossing sites, claims the CFO

Imax Corporation. CFO Natasha Fernandez said the company “is not exposed in the same way as Cineworld’s other business partners to the bankruptcy filing of the parent company of Regal Cinemas.

The second world exhibition made the long-awaited move this morning, citing the impact of Covid on its business.

Speaking at Bank of America’s Media, Communications and Entertainment Conference 2022, Fernandez cited the nature of the leases, as well as Imax’s presence in the highest-grossing markets. “Imax has a great long-standing partnership” with Cineworld, he said, and “we have a strong liquidity position and a flexible business model, so we can maneuver and navigate the changes in the exhibition landscape.”

Imax theaters are operated under a main lease agreement, he continued. “That means we don’t have a deal for every screen. We have an agreement that governs them all. … You’re not so exposed from that perspective. “

Regarding Cineworld’s journey, he said the bankruptcy process would allow the exhibitor to “clean up their balance sheet, move forward and continue to operate. So if they’re going to operate, they run the best complexes. Like this, [they will] Clean up the lower complexes and sell them or do something with them. But there are no Imax screens here, Imax screens are in all complexes of the highest quality.

Heather Anthony Boyriven, director of business transformation for Imax, appeared on stage with Fernandez. Asked how the company will position itself in the post-Covid market, the executive said: “We still see ourselves as the most engaging film in the world. This is what we focus on ”, not only in large format auditoriums, but also in cameras and other technologies used in cinema and exhibitions.

Criticizing the company’s inflationary pressures and premium pricing offerings, Fernandez said box office receipts have grown in the past seven consecutive recessions. In 2008, in the midst of the global financial crisis, Imax experienced the most significant growth in its history. “When you think about the disposable income of viewers, they will stop going on holidays, sporting events, concerts. But they don’t necessarily cut the film because the film is still available. They still want to go out and try something.

While Fernandez touted fourth quarter releases, most notably James Cameron’s long-awaited sequel Avatar, he also acknowledged a high degree of uncertainty about which films Chinese government officials would allow to be screened in the country. “Let’s hope it comes,” he said. However, as a long-term coverage and strategic adaptation, Imax emphasizes the title in “multiple local languages” in China and other markets.