“Inside Out 2” helped lift Imax's quarterly earnings, but a slower start to the summer blockbuster season weighed on the company's earnings and revenue.
The big-screen company reported revenue of $89 million for the period ended in June, down 9% from $98 million in the year-ago quarter. Net income was $3.6 million, down 56% from $8.4 million in the year-ago quarter, while earnings per share were flat at 18 cents, down 36% from 26 cents in the year-ago quarter. Adjusted earnings before interest, taxes, depreciation and amortization fell 14% to $31 million, down from $34 million in the year-ago period.
Despite the declines, IMAX beat Wall Street estimates. The company is expected to report quarterly earnings of 8 cents per share on revenue of $79 million, according to Zacks. IMAX shares rose more than 3.7% after the stronger-than-expected earnings report.
The company said its global box office total was $196.4 million, attributing that to the popularity of “Inside Out 2,” the summer’s biggest hit. IMAX also sold “The Blue Angel,” an original aviation documentary it produced, to Amazon, boosting revenue. The film grossed $2.2 million during its run in IMAX theaters.
But overall, the box office was in the doldrums for much of the quarter, with films like “Furiosa” and “The Fall Guy” failing to draw audiences. Some analysts attributed the lack of popcorn season to the impact of the Hollywood actors and writers strike, which has delayed production and left theaters with fewer films to show. In a statement, Imax CEO Rich Gelfond painted a more optimistic picture of the future.
“With the disruptions and impacts of the pandemic behind us, we are in a great position to realize the full benefits of our robust, asset-light business model,” said IMAX President and CEO, Steve Wright. “The second quarter provided strong evidence that we are at a turning point in our business; we are in a state of system sales, our system installations have increased significantly, and our timeline through 2026 is as strong as we have ever seen.”
As Gelfond points out, Imax has expanded its footprint, installing 24 theaters in the quarter, up from 24 in the year-ago period, bringing its total number of locations to 1,705. Imax said it has a backlog of more than 500 theaters left to install. It also said it signed a deal with China’s Wanda Film that represents “our largest exhibition agreement in five years.”
Next quarter, IMAX will release “Deadpool & Wolverine,” which is expected to set a record for an R-rated debut, as well as “Beetlejuice” and “Alien: Romulus.”
