IMAX Lasers in on Profitable Q4 Behind Strong Theatrical Revenue
The big screen company topped both revenue and earnings per share expectations
Matt Pressberg | February 23, 2017 @ 1:13 PM
Last Updated: February 23, 2017 @ 2:01 PM
Blockbusters like Disney’s “Rogue One: A Star Wars Story” helped IMAX to a big fourth quarter, as the company reported earnings that topped expectations.
After markets closed Thursday, the ultra-large screen manufacturer reported revenue of $106.9 million and earnings of 22 cents a share. That fell short of the company’s fourth quarter last year, when mega-hits like “Star Wars: The Force Awakens” powered IMAX to $119.3 million in revenue and earnings of 39 cents a share. IMAX did, however, top analyst expectations, which were $99.6 million in revenue and earnings of 21 cents a share on average.
“2016 was an impressive year for IMAX on several strategic fronts: our footprint grew 15 percent, we signed a record 319 new theatre agreements, and we further established IMAX as a leader in the entertainment industry through two key growth initiatives — original content and virtual reality,” IMAX CEO Richard L. Gelfond said in a statement. “We’re extremely optimistic on the theatrical side of the business, where demand for IMAX has hit record levels. With a global footprint of 1,215 theatres in 75 countries and a promising blockbuster-driven 2017 film slate that features more IMAX differentiation than any year in our history, we believe we’re extremely well positioned for future growth.”
On Wednesday, IMAX announced that it has extended its relationship with Disney with a new multi-picture deal that will begin this year and continue through 2019, and include tentpoles like the forthcoming untitled “Indiana Jones” and Han Solo films.
IMAX is heavily reliant on spectacle-heavy blockbusters and the Chinese box office, both of which slowed down last year. The U.S. box office was down 5 percent in the fourth quarter of 2016 compared with the previous year, and the Chinese box office was up just 3 percent after years of double-digit growth — and actually down in dollar terms, due to the weakening of China’s yuan.
The company’s biggest client is Dalian Wanda Group, the parent of AMC Theatres and also China’s (and the world’s) largest theater chain. In August, IMAX and Wanda agreed to add 150 theaters in China, bringing the total up to 360 IMAX screens by 2020.
IMAX has also stepped up its pursuit of non-theatrical revenue, recently expanding its footprint in virtual reality with the opening of its first VR arcade in Los Angeles, which allows paying customers without the ability or desire to splash several hundred dollars on high-end VR equipment to try out the technology.
17 Movies We're Dying to See in 2017, From 'Beauty and the Beast' to 'Dunkirk'
Scan TheWrap's list of our most anticipated movies of the upcoming year
March 10: "Kong: Skull Island"
The new iteration of the ginormous ape boasts a stellar cast of Brie Larson, Tom Hiddleston, Samuel L. Jackson, John Goodman, John C. Reilly and Jason Mitchell. And the trailers have looked stunning (and terrifying) so far.
Warner Bros.
March 17: "Beauty and the Beast"
Yes, Disney is producing a lot of live-action version of their original IP, but after the success of "The Jungle Book" last year, we can't wait for this one. Also, Emma Watson is the perfect Belle and, based on what we've seen from trailers, it will be magical.
Disney
April 14: "The Fate of the Furious"
Who doesn't love a good ol' "Fast and the Furious" movie? However, this one will mark the first full movie without Paul Walker, who was included in the last film through CGI.
Universal
May 3: "Logan"
"Logan" will be Hugh Jackman's final performance as the famous "X-Men" character, which many call the best character in the franchise. It is also a coveted role that has defined Jackman's career for 20 years. But "Logan" will offer a new twist on the franchise -- Logan is older, and his powers are fading.
Fox
May 5: "Guardians of the Galaxy Vol. 2"
The first "Guardians" film was well-received both critically and commercially, so it's about time Marvel fans are treated to a sequel. And Baby Groot has already cozied up to fans everywhere.
Disney
May 26: "Baywatch"
Many are curious to see how a movie adaptation of the classic TV series will turn out -- but with a sexy cast and alums like David Hasselhoff and Pamela Anderson returning, we think it might be worth waiting for.
June 2: "Wonder Woman"
Come on, Gal Gadot in a movie that exemplifies female empowerment? We're in! The trailers have been epic so far, and DC fans desperately need a pick-me-up after many were disappointed with "Suicide Squad" and "Batman v Superman: Dawn of Justice."
Warner Bros.
July 21: "Dunkirk"
Christopher Nolan's WWII drama has been on people's radar for a while now, and the film will draw in younger fans with its casting of Harry Styles. The movie boasts a great ensemble, comprised of Tom Hardy, Mark Rylance, Cillian Murphy and James D'Arcy.
Warner Bros.
July 28: "The Dark Tower"
Enough of Stephen King's novels have been adapted into film to know that "The Dark Tower" will be great. Idris Elba is set to play The Gunslinger, while Matthew McConaughey will star as The Man in Black.
Getty Images
August 11: "Baby Driver"
Edgar Wright is a great writer/director, having directed "Shaun of the Dead" and written screenplays for movies like "Ant-Man." Starring Jon Hamm, Kevin Spacey, Jamie Foxx and Ansel Elgort, "Baby Driver" looks like a solid action thriller.
Getty Images
October 6: "Blade Runner 2049"
Fans of the original "Blade Runner" had to wait 35 years for a sequel, and it comes with the return of Harrison Ford and the addition of Ryan Gosling -- and it's set way in the future.
Warner Bros.
November: "Bad Moms Christmas"
"Bad Moms" delivered one of the most hilarious scenes in a comedy this year (yes, we're talking about the grocery store one) so we're excited about the prospect of another movie featuring the Mila Kunis-Kathryn Hahn-Kristen Bell trifecta.
STX
Nov. 22: "Murder on the Orient Express"
An awesome cast including Daisy Ridley, Johnny Depp, Judi Dench and Michael Pena will star in the remake of the 1974 film, based on Agatha Christie's famous novel.
December 15: "Star Wars: Episode VIII"
Luke Skywalker (Mark Hamill) is set to return in the eighth movie, which will also mark Carrie Fisher's last performance as Princess Leia after her untimely death in December. And it's "Star Wars," so of course we're excited!
Disney
Dec 25: "The Greatest Showman"
For fans of P.T. Barnum or anything circus-related, "The Greatest Showman" will be the biographical drama to look out for in 2017. And for fans already deprived of Hugh Jackman as Wolverine... well, he's in this movie!
Getty Images
2017: "Mother"
"Black Swan" and "Requiem for a Dream" director Darren Aronofsky helms this movie with his girlfriend Jennifer Lawrence starring. It's about a couple whose tranquil life gets disrupted when guests arrive at their home uninvited.
Getty Images
2017: "Paul Thomas Anderson Untitled Fashion Project"
Movie buffs love seeing any new project by Paul Thomas Anderson. The plot is unknown, but it's described as a drama in London's fashion world in the 1950s. Daniel Day-Lewis stars.
Getty Images
1 of 18
From superhero movies to WWII dramas, 2017 has great films in store
Scan TheWrap's list of our most anticipated movies of the upcoming year