Imax unveiled its fourth-quarter earnings report on Tuesday, revealing a slight decrease in net earnings attributed to a decline in overall revenues.
Despite showcasing blockbuster films like “Aquaman and the Lost Kingdom,” “Taylor Swift: The Eras Tour,” and “Wonka” on its large-format screens, Imax reported fourth-quarter revenue of $86 million, marking a 12 percent decrease from the $98 million recorded in the same period last year, during the rapid reopening of cinemas in China.
The large-format exhibitor reported a net income of $2.5 million, slightly lower than the $2.6 million profit from the same period the previous year. Adjusted earnings per share for Q4 came in at 11 cents, down 11 percent from 19 cents per share reported a year earlier. While this exceeded the Zacks Consensus Estimate projection of 10 cents per share, it fell short of the forecasted overall revenue of $89.59 million.
With Hollywood experiencing a gradual recovery from the pandemic, Imax aims to capitalize on the increasing demand for new and upgraded theater systems globally. In 2023, the company inked deals for 129 new and upgraded Imax systems worldwide, collaborating with 36 exhibition clients across 26 territories.
Highlights from 2023 include Imax achieving record North American box office revenue of $393 million and a global box office total of nearly $1.1 billion. Despite facing challenges from the strikes impacting the 2024 Hollywood slate, Imax remains optimistic about its future prospects. CEO Richard Gelfond anticipates a robust box office performance following the premiere of “Dune: Part Two,” which was shot entirely with Imax cameras and will receive a limited run in Imax 70mm film format.
Gelfond expressed confidence in Imax’s ability to maintain a strong presence in the post-pandemic world, citing the company’s impressive performance on a title-by-title basis and its consistent capture of a high share of the box office.
