Imax recently reported a decrease in both revenue and profit for the last quarter. Sales fell by 9% to $89 million, but despite this decrease, the company managed to beat Wall Street estimates. The adjusted EBITDA was $31 million, down by 14%, and the adjusted earnings per share came in at 18 cents, compared to 26 cents in the same quarter of 2023.
One of the main reasons for Imax’s better-than-expected performance was a surge in the global box office, especially in June. The company reported global box office revenue of $196.4 million in Q2, with a significant boost from hit releases in June. This momentum has continued into Q3, with Imax delivering 10% or more of the domestic opening on seven consecutive releases this spring, despite being on only 1% of North American screens.
Imax acknowledged that the thin slate of releases in April and May was due to Hollywood strikes last year, which squeezed exhibitors. However, the record-breaking performance of films like Inside Out 2 has demonstrated that the global grosses of the early summer were depressed not by lack of audience demand, but rather by a lack of supply.
Imax’s original documentary, The Blue Angels, also contributed to its strong performance. The documentary earned over $2.2 million in Imax and became the highest-grossing theatrical documentary opening of the year so far. It also performed well on Prime Video, becoming the top original film in its first weekend and the third most-watched original movie in all of streaming in its first week.
CEO Rich Gelfond expressed optimism about Imax’s future, stating that the company is in an excellent position to realize the benefits of its strong business model. He emphasized that Imax is at an inflection point, with strong system sales activity, increased system installations, and a robust slate of films planned through 2026. Gelfond will be hosting a call with analysts to discuss the company’s performance further.
While Imax may have experienced a softer quarter in terms of revenue and profit, the company’s ability to exceed Wall Street expectations and capitalize on the surge in the global box office demonstrates its resilience and potential for growth in the future.