Imax CEO Optimistic About Future Following Industry Recovery from Strikes and Pandemic.
For Richard Gelfond, the CEO of Imax, the setbacks brought by Hollywood strikes and the COVID-19 pandemic are now historical footnotes. In a recent conference call with analysts, Gelfond discussed the robust recovery of the exhibition industry, marked by a resurgence in box office sales and an increase in theater installations, despite a revenue dip in the second quarter.
“Having moved past the challenges of the strikes and the pandemic, our asset-light business model is poised to capture substantial benefits,” stated Gelfond. This optimistic outlook serves as reassurance to major exhibitors, Imax's primary clientele, who have weathered significant uncertainties during the pandemic peaks and disruptions from the Hollywood labor disputes.
Gelfond highlighted a critical turning point in the industry's recovery, fueled by a heightened demand for the Imax experience from filmmakers, studios, and global audiences. “We are on the brink of an exhilarating era for our company,” he remarked, bolstered by a strong global box office performance.
Despite a 9% decline in total revenue to $89 million from the previous year's $98 million, and a sharp drop in profits to $3.4 million from $8.4 million, the company saw significant achievements. Notably, the animated film Inside Out 2 smashed records on Imax screens, contributing to a $196.4 million global box office in the second quarter alone.
Imax also saw success with other titles like Kingdom of the Planet of the Apes, Furiosa, and Godzilla x Kong: The New Empire. Looking ahead, Gelfond is optimistic about 2025, citing diminished impacts from the strike and pandemic as factors that will bolster traditional movie exhibitions.
Additionally, Imax's documentary The Blue Angels was sold to Amazon Prime Video and has performed remarkably, setting a new record for the highest-grossing theatrical documentary opening of the year. The film is slated for a commercial release in Imax theaters in 2025.
In terms of expansion, Imax installed 24 new theater systems in the second quarter, up from 20 the previous year, and raised its forecast for new or upgraded installations to 130 for the full year. The growth is partially fueled by a deal with Wanda Film to upgrade 61 theaters in China, where Imax continues to enhance its significant presence.
While Gelfond expressed confidence in the Chinese market's potential rebound, he noted limited visibility into the region compared to the U.S., where Imax maintains close collaborations with major studios.
Imax is also diversifying its content offerings. A partnership with NBCUniversal will bring live coverage of the Olympic Games opening ceremony to over 150 Imax theaters in the U.S., featuring performances by Celine Dion and Lady Gaga, leveraging Imax's large-format screens for a unique viewing experience.
