The exhibitor’s fourth-quarter earnings surpassed Wall Street expectations
On top of having a record year at the box office and in terms of revenue in 2019, Imax Corp. reported earnings for the fourth quarter on Wednesday that were above Wall Street’s expectations.
Imax reported net income for the quarter of $18.2 million, up 973% compared to the $1.7 million the premium exhibitor reported during the same three-month period a year ago. That profit for the company equates to adjusted per share earnings of 35 cents, which was slightly better than the 30 cents per-share earnings analyst via Yahoo! Finance were expecting.
The earnings per share were also up from last year’s 26 cents per share. Imax shares were up more than 4% in after-hours trade on Wednesday.
Revenue for the fourth quarter hit $124.3 million, better than the $117.5 million analysts anticipated, and up compared with the $109 million Imax reported a year ago.
“Across 2019, our business demonstrated significant strength by setting a number of new records for the company including annual revenue as well as global, international, and local language box office — underscoring the increasing geographic diversification of our business,” CEO Richard Gelfond said in a statement. “In a world of nearly infinite entertainment choices, audiences continue to choose Imax. Immersive entertainment experiences continue to connect fans and drive culture around the globe. We are committed to building on strong demand for The Imax Experience to strengthen our unique position in the entertainment ecosystem and deliver value for our shareholders.”
For the full year, Imax’s revenue hit a record $396 million. The company previously reported that it had a record 2019 box office of $1.1 billion.
Imax said in its news release that the theater business saw revenues increase more 7% to $180.5 million in 2019, compared with $168.4 million in the prior-year period.
Gelfond also took the opportunity to address the ongoing Caronavirus outbreak in China where Imax operates a significant portion of its business.
“In terms of the health crisis in China, where movie theaters nationwide remain closed, we are continuing to monitor the situation closely and needless to say the safety of our team and audiences is our top priority,” Gelfond said. “We look forward to circumstances improving and Imax continuing to satisfy China’s strong demand for premium quality content and entertainment experiences.”