In the second quarter of the year, Imax faced challenges as its revenue and profit saw a decline compared to the previous year. Despite this, the company managed to surpass Wall Street estimates, driven by a surge in global box office sales in June and a significant boost from the sale of its original documentary, The Blue Angels, to Amazon.
During the three months ending in June, Imax reported a 9% drop in sales, totaling $89 million. However, the company outperformed consensus expectations with adjusted EBITDA of $31 million (down 14%) and adjusted earnings per share of 18 cents, beating the previous year’s figure of 26 cents.
Imax’s global box office revenue reached $196.4 million in Q2, with a strong performance in June attributed to the release of several hit movies. The company highlighted that it had captured 10% or more of the domestic opening on seven consecutive releases during the spring, despite being shown on only 1% of screens in North America. Imax attributed the earlier depressed global grosses to supply constraints resulting from limited movie releases in April and May due to Hollywood strikes the previous year.
The sale of Imax’s original documentary, The Blue Angels, to Amazon proved to be a significant revenue contributor, generating over $2.2 million for the company. The documentary also achieved the highest-grossing theatrical documentary opening of the year and performed well on Prime Video, becoming the top original film in its debut weekend and the third overall original movie across all streaming platforms in its first week.
Imax’s CEO, Rich Gelfond, expressed optimism about the company’s future prospects, stating that they are in a strong position to maximize the benefits of their asset-lite business model. He highlighted the company’s increased system sales activity, rising system installations, and a robust film slate extending through 2026. Gelfond emphasized that the second quarter demonstrated a turning point for the company’s business, with promising growth potential ahead.
Overall, while Imax faced challenges in the second quarter, it managed to exceed expectations through its strategic initiatives and strong performance in the global box office. The company’s focus on original content and technology-driven experiences positions it well for future success in the entertainment industry.
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