Imax, a giant in the film industry, recently reported softer revenue and profit in their last quarter. Despite this decline, the company managed to exceed Wall Street estimates, attributing the success to a surge in global box office in June and the sale of their original documentary The Blue Angels to Amazon. Sales for the quarter dropped by 9% to $89 million, while adjusted EBITDA fell by 14% to $31 million. Adjusted earnings per share also decreased to 18 cents from 26 cents in the previous quarter.
One of the highlights for Imax was its global box office performance, which reached $196.4 million in Q2. The company experienced a surge in June due to the release of hit movies, setting the momentum for a successful Q3. Imax’s ability to capture a significant portion of the domestic opening on a minimal number of North American screens showcased the company’s strong position in the market.
Imax attributed the lackluster performance in the early summer to supply chain issues within the film industry. Hollywood strikes in the previous year resulted in a thin slate of movies in April and May, causing a squeeze on exhibitors. However, the record-breaking success of Inside Out 2 and other recent releases demonstrated that the demand for quality content was high, despite the challenges faced by the industry.
The release of The Blue Angels, part of Imax’s foray into original documentaries, proved to be a significant success for the company. The documentary earned over $2.2 million in the Imax format and achieved the highest grossing theatrical documentary opening of the year. Its debut on Prime Video also garnered positive results, becoming the top original film in its first weekend and the third most-watched original movie in the streaming space in its first week.
Imax’s CEO, Rich Gelfond, expressed optimism about the company’s future prospects, stating that they were at an inflection point in their business. Despite the challenges presented by the pandemic and industry-wide strikes, Imax is confident in its asset-lite business model. The company anticipates significant growth in system sales activity, with increased system installations and a robust slate of movies planned through 2026.
While Imax faced financial setbacks in the last quarter, the company’s strategic initiatives and strong performance in the global box office indicate a promising future. By addressing supply chain issues, investing in original content, and leveraging their unique capabilities in the film industry, Imax is well-positioned to capitalize on emerging opportunities and drive growth in the coming years.