Imax shares nosed higher in after-market trading, up over 3% on solid numbers, new installations, and a roaring good outlook by CEO Rich Gelfond.
Content revenues of $30 million fell 32% year-over-year, up against Christopher Nolan’s phenomenon Oppenheimer — the company’s fifth highest grossing title of all time — in the year prior. Despite the decline, the third quarter 2024 was the third-highest grossing September quarter in Imax history, in part due to Deadpool & Wolverine, Imax’s fifth highest grossing Marvel movie, which buoyed earnings.
The company’s other half, Technology Products and Services, saw revenues rise 3% year-over-year to $58 million, driven by system installation growth that’s outpacing the prior year and helped partly offset lower box office.
Imax installed 49 systems in the September quarter compared to 30 systems the year before, an increase of 63% year-over-year. Commercial network growth continues with the number of Imax locations increasing 4% year-over-year to 1,714 systems. Imax ended Q3 with a backlog of 472 Imax systems. The company continues to strike agreements in key growth markets including Australia, France, Japan, and Saudi Arabia.
Total revenue of $91.5 fell 12%.
Net income rose 13% to $13.9 million. Adjusted, it was $18.9 million, down 3% with EPS flat at 35 cents a share, beating Wall Street estimates.
“IMAX continues to set the table for a new, sustained era of growth with a 2025 and 2026 slate that is as promising as we’ve ever seen,” Gelfond said, anticipating that 2025 will be the company’s best year ever at the global box office, with more than $1.2 billion in Imax grosses worldwide.
Near term, a diverse slate of tentpoles this Thanksgiving and through the holidays include Gladiator II, Wicked, Moana 2, and Mufasa: The Lion King.
On a call with analysts after the number, Gelfond declined to comment on reports that it’s talking with Netflix about a theatrical release for Greta Gerwig’s Chronicle of Narnia reboot.
Gelfond noted that the slate next year is highlighted by at least 14 Filmed for IMAX releases worldwide — shot with Imax cameras, for Imax screens, calling it an “historical indicator of higher indexing for our platform.”
“With an exceptional content pipeline, accelerating system installations, and robust sales activity worldwide, we are very well-positioned to execute and capitalize on the opportunity ahead over the next several years.”