For IMAX CEO Richard Gelfond, the effects of last year's Hollywood strikes and the lingering pandemic are now in the past.
 |
| Richard Gelfond BRENDON THORNE/GETTY IMAGES |
“With the strikes and the lingering effects of the pandemic firmly behind us, we are in an excellent position to fully realize the benefits of our strong, asset-lite business model,” Gelfond told analysts during a morning conference call following the release of his company's second-quarter financial results, which showed a dip in revenue and sales.
This optimism will likely be reassuring to top executives at major exhibitors, IMAX's main customers for its theater systems, who have faced a crisis of confidence due to theater shutdowns during the height of the pandemic and the disruption of their movie pipeline from last year's writers and actors strikes in Los Angeles.
“We believe we have reached a pivot point in the post-strike rebound, given the surging demand for the IMAX experience among filmmakers, studios, and audiences worldwide. We stand on the verge of an extremely exciting time for our business,” Gelfond added.
Despite a 9 percent drop in overall revenue to $89 million, compared to last year's $98 million, and a 57 percent decline in profits to $3.4 million from $8.4 million in 2023, the strength of Hollywood’s box office recovery in the wider exhibition industry was evident at the film technologies company.
Disney and Pixar’s Inside Out 2 — now the top-grossing Hollywood animated film of all time at the worldwide box office — performed exceptionally well on IMAX screens in June. This success contributed to IMAX posting a global box office of $196.4 million in the second quarter, driven by a surge in movie releases.
Other significant second-quarter box office performers for IMAX included Kingdom of the Planet of the Apes, Furiosa, and Godzilla x Kong: The New Empire. Gelfond expressed optimism, stating, “I do think 2025 is going to be a much more positive year.
The strike is farther behind us, and the fact that the pandemic is pretty much over in the world means even traditional exhibitors playing traditional movies do better.”
During the second quarter, IMAX sold its original documentary The Blue Angels, which focuses on the U.S. Navy's Blue Angels pilots, to Amazon Prime Video. In its first week, the film earned over $2.2 million on IMAX screens, making it the highest-grossing theatrical documentary opening of the year for the company.
A broader commercial release for The Blue Angels in IMAX institutional theaters is planned for 2025.
Looking ahead, IMAX installed 24 theater systems in the second quarter, up from 20 in the same period last year. Gelfond also raised his forecast for full-year 2024 new or upgraded theater installations to 130, from the previously projected 120, during the analyst call.
The updated forecast comes after Chinese exhibitor Wanda Film, IMAX's largest global exhibition partner, announced a deal to upgrade 61 theaters. Wanda currently operates 381 IMAX locations in China, with another 19 in the pipeline.
IMAX concluded the latest quarter with 1,705 theater locations worldwide, a 4 percent increase from the previous year, and has a backlog of 504 IMAX theater systems.
Gelfond expressed optimism about the Chinese market, noting the strong content slate and potential for a rebound, despite uncertainties due to local movie regulations. This contrasts with the U.S. market, where IMAX maintains close collaboration with major studios.
Additionally, IMAX and NBCUniversal have partnered to present live coverage of the Olympic Games opening ceremony on July 26 in over 150 U.S. theaters. The event will feature performances by Celine Dion and Lady Gaga, showcased on IMAX's large screens.
