Imax Sees Revenue and Profit Drop but Surpasses Wall Street Estimates Due to Global Box Office Surge

Imax faced a decline in revenue and profit during the last quarter, despite surpassing Wall Street estimates. The company cited a surge in global box office in June as well as a significant boost from the sale of its original documentary, The Blue Angels, to Amazon. Sales declined by 9% to $89 million for the three months ending in June, yet they still managed to beat consensus.

Imax reported a global box office of $196.4 million in Q2, with a notable surge in June due to hit releases. This increase in momentum has continued into Q3, proving to be beneficial for the company. Despite facing a decrease in adjusted ebitda of $31 million (down 14%) and adjusted earnings per share of 18 cents (compared to 26 cents in the previous quarter), Imax continues to showcase a strong performance in the global box office.

The sale of The Blue Angels, as part of Imax’s venture into original documentaries, contributed significantly to their revenue. The documentary earned over $2.2 million in Imax and achieved the highest-grossing theatrical documentary opening of the year to date. Its debut on Prime Video resulted in it becoming the top original film in its opening weekend and the third most popular original movie in all of streaming during its first week.

CEO Rich Gelfond expressed optimism about the future, stating that the company is in an excellent position to benefit from its strong, asset-lite business model now that the impact of the pandemic and strikes are behind them. Despite the challenges faced in the past, Imax is confident that they are at an inflection point in their business. Gelfond highlighted the increased system sales activity and installations, along with a strong slate of movies planned through 2026, as positive indicators for the company’s future success.

Despite the decline in revenue and profit, Imax managed to outperform expectations due to the surge in global box office and successful sale of The Blue Angels. The company’s commitment to original documentaries and strong lineup of movies for the upcoming years showcases a promising outlook. As Imax continues to navigate through challenges and capitalize on opportunities, it remains a key player in the entertainment industry.