With revenue of $79 million last quarter (down 9%) and a solid increase in profits, Imax more than beat its Q1 numbers, thanks in large part to success Dune: Part 2, a blockbuster amid a weak quarter for major releases. Box office returns were partially offset by a decline in sales of new Imax systems.
The large-format exhibitor’s worldwide box office totaled $261 million, marking its third-highest first-quarter sales ever, driven by Dune, Godzilla x Kong: New EmpireImax exclusive Queen Rock Montreal and local language releases (21% of the total) in a quarter affected by a weak release slate due to the Hollywood strikes.
Adjusted Ebitda (earnings before interest, taxes, depreciation and amortization) was about the same as last year at $32 million, beating Wall Street consensus. Net income increased from $2.5 million to $3.3 million. Shares have been on the rise lately, including this week, as Wall Street increasingly views Imax as the best way to find upside in consumers’ ongoing shift toward premium screens. Installations increased but new sales slowed, probably partly affected by the actors’ and writers’ strikes as exhibitors were cautious given the low number of editions, so numbers are expected to pick up.
Domestically, the company generated 5.9% of North American domestic box office in the quarter ended March – its highest quarterly market share ever in North America – and 3.4% of global box office.
“Our industry-leading momentum is driven in part by our strategic expansion of the IMAX value proposition; Our technology is increasingly driving content creation as well as content delivery. “Oppenheimer,” “Dune – Part Two” and “Godzilla x Kong” demonstrate that more and more of today’s commercially and critically successful blockbusters are being shot on IMAX cameras for the IMAX platform – boosting our global box office and balancing our systems makes more of a “must-do” for global exhibitors,” said CEO Rich Gelfond.
“We currently have more films in production with IMAX cameras than ever before in our history, and an unprecedented series of Filmed for Imax titles are planned for 2025 – including all of our releases that are targeted for the crucial summer blockbuster season are planned. We are also opening up the possibilities of The IMAX Experience by collaborating with a greater diversity of creators than ever before across local language, documentaries, music, gaming, sports and live events.”
“IMAX is very well positioned to accelerate growth and margin expansion, with encouraging guidance throughout 2025 and 2026 and strong sales activity in the key global markets we are targeting for expansion.”