After a hot run at the summer box office, theater chains are bracing for a downturn this fall amid a lack of studio congestion. And the revelation that debt-laden Regal owner Cineworld is filing for bankruptcy in Chapter 11 has sent shockwaves through the global film industry.
“Imax has had a long and great association with them,” Imax CFO Natasha Fernandes said at the Bank of America Media, Communications and Entertainment Conference on Wednesday when asked about Cineworld’s bankruptcy process. The CEO added, “We have a strong liquidity position and flexible business model, so we can anticipate and address changes in the exposure landscape from that perspective.”
In August, Imax said that it had signed an extended agreement with Cineworld to open or update 52 of its systems in Cineworld locations until 2026. (In total, Imax has more than 1600 screens worldwide, 773 in China and 363 in United States). District of Texas, but “expects to continue operating its global business and theaters smoothly as usual.”
Fernandez noted that the restructuring of Cineworld will not have as much of an impact on Imax locations. “When looking at the restructuring and bankruptcy filings, it’s primarily to help them clean up their balance sheet…and continue to operate in the future,” explained the CFO of Imax during the webcast panel. “So if they’re going to operate, they’re going to operate in the best complexes, so clean up the complexes that aren’t working and sell them or do something with them. But there are no Imax screens here; image 1 large image 1 Imax screens are all high quality complexes.
Powered by blockbusters like Paramount Top Gun: Maverickof marvel Doctor Strange in the Multiverse of Madness and universal jurassic world domain, Imax revenue for the quarter ended June 30 increased to $74 million from $60 million in the prior quarter. The company also said it increased its box office share to 5% of the domestic market this year, up from 3% in the pre-pandemic period of 2019, when revenue totaled $11.4 billion in North America.
Still, the theater chain posted a loss of $2.9 million despite a string of box office hits as the industry continues to recover from COVID-era lows.
Since January 3, the first day of trading this year, Imax shares have dropped 15 percent to $15.48 on September 7. (That’s a smaller decline than memestock AMC Theaters, the world’s largest theater chain, whose stock price has dropped 68% this year, or exhibitor Cinemark, whose stock has dropped 19% since the start of 2022.)
Imax aims to position itself as the premium theater experience and technology platform to stand out among networks. “We are not exhibitors, and this obvious fact is confirmed by our results,” CEO Richard Gelfond said on the July 28 earnings call. As of June 2019, our best year, it was just 5% behind. And, in contrast, the national exhibition industry shrank by 35% during the same period.
Earlier this month, on September 2, Eric Handler of MKM Partners gave Imax a “buy” rating, saying its “focus on blockbuster films, global presence, and asset-light financial model will insulate the company well.” broader problems”. traditional movie theater operators,” but the analyst cut his share price target by $1 to $22 a share.
Wall Street analyst Eric Wold of B. Riley Securities lists Imax as a “buy” at $25 a share based on his latest research report in late August, and says the company remains in a “buy” at $25 a share. strong position” in relation to earnings. your competitors.
Source: Hollywood Reporter
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
