IMAX and Hengdian Films Expand in China With 20 New Locations
IMAX IMAX announced extending its collaboration with Hengdian Films to install 20 IMAX systems with Laser technology in China.
This marks the largest agreement for new IMAX systems in four years, reinforcing the growing interest from Chinese exhibitors and audiences for The IMAX Experience with Hollywood and local content.
Hengdian Films and IMAX have enjoyed a successful partnership since 2015. The new agreement will increase the total number of IMAX theaters in collaboration with Hengdian Films to 26. The new IMAX with Laser theaters will be situated in Jingdezhen, Ulanqab and Zhangjiakou, marking the company's first-ever presence in these locations in China.
This deal comes after IMAX China delivered its most successful summer season at the box office, with notable performances from films like Oppenheimer and Creation of The Gods. IMAX's box office results also surged during the Chinese New Year, driven by The Wandering Earth 2, which is now the highest-grossing local-language film in IMAX's history.
IMAX Corporation Price and Consensus
IMAX Corporation price-consensus-chart | IMAX Corporation Quote
Expanding Partner Base to Aid Top-Line Growth
IMAX has entered into some notable partnerships with Golden Screen Cinemas (“GSC”), NCG Cinemas and Prime Focus Technologies (“PFT”). These partnerships are expected to boost the top-line growth in the upcoming quarters.
GSC and IMAX have entered into an extended collaboration, with plans for six advanced IMAX with Laser systems in Malaysia. This agreement involves establishing five new locations, including one in Kuala Lumpur's center and upgrading one at the Southkey Megamall in Johor Bahru.
IMAX and American theater chain NCG Cinemas have disclosed a fresh agreement for three advanced IMAX with Laser systems within the United States. This arrangement will broaden the company's current presence in NCG Cinemas, with two new IMAX venues in Tennessee and Georgia, along with an improved location in Michigan.
IMAX and PFT, a company specializing in AI-powered technology solutions for the media and entertainment sector, have unveiled their intentions to extend a strategic collaboration into the realm of streaming. As part of this agreement, IMAX will broaden the availability of its Stream Smart technology to PFT customers in Europe, Asia and Australia.
The company has been riding on an overwhelming response of movies like Paramount Global’s PARA Mission: Impossible-Dead Reckoning Part, Sony’s SONY Spider-Man: Across the Spider-Verse and Comcast’s CMCSA Oppenheimer.
IMAX achieved its most successful global opening this year for Tom Cruise's renowned Mission: Impossible series, as Mission: Impossible-Dead Reckoning Part One collected $25 million worldwide. The company continued its dominant presence at the summer box office, securing 10.6% of the film's global debut despite appearing on a smaller proportion of screens.
The company achieved remarkable success with a $20 million opening weekend for Sony's Spider-Man: Across the Spider-Verse at the global box office. This impressive performance emphasizes the growing appeal of animation within the IMAX global network, with the sequel becoming the second-largest animated opening in IMAX history.
IMAX had an exceptional opening weekend at the global box office, driven by Christopher Nolan's Oppenheimer. The film made an impressive debut, earning $35 million on 740 screens worldwide. This marked a significant achievement, with the company garnering its largest share of a film's global opening weekend box office at 20% of the total earnings.
IMAX currently carries a Zacks Rank #2 (Buy). Shares of the company have gained 22.9% year to date compared with the Zacks Consumer Discretionary sector’s rise of 1.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for IMAX’s 2023 revenues is pegged at $387.5 million, indicating a year-over-year increase of 28.82%. The consensus estimate for 2023 earnings is pegged at a profit of 85 cents per share, indicating year-over-year growth of 1316.67%.
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