Imax experienced a decrease in revenue and profit in the last quarter, with sales dropping by 9% to $89 million for the three months ending in June. Despite the decrease, Imax was able to surpass Wall Street estimates. Adjusted EBITDA fell by 14% to $31 million, while adjusted earnings per share were reported at 18 cents, down from 26 cents in the previous quarter.
Imax credited a surge in global box office in June for its overall success in the second quarter. The company reported a global box office of $196.4 million in Q2, with a significant boost from hit releases in the month of June. The momentum gained in Q2 has carried over into Q3, with Imax delivering 10% or more of the domestic opening on seven consecutive releases this spring, despite only being on 1% of North American screens. Imax noted that supply constraints, rather than lack of demand, impacted global grosses earlier in the summer due to thin slates in April and May resulting from Hollywood strikes last year.
Imax also highlighted the success of its original documentary, The Blue Angels, which was sold to Amazon. The documentary earned over $2.2 million in Imax and achieved the highest-grossing theatrical documentary opening of the year. Upon its release on Prime Video, The Blue Angels became the top original film in its debut weekend and ranked as the third most popular original movie across all streaming platforms in its first week.
CEO Rich Gelfond expressed optimism about Imax’s future, stating that the company is in a strong position to fully realize the benefits of its asset-lite business model. Gelfond mentioned that Imax is experiencing an inflection point in its business, with increased system sales activity, significant system installations, and a robust slate of films scheduled through 2026. He concluded by hosting a call with analysts to discuss the company’s performance and future prospects at 8:30 ET.
While Imax may have faced challenges in terms of revenue and profit in the last quarter, the company’s ability to exceed expectations and capitalize on global box office success and original documentary releases bodes well for its future growth and success in the entertainment industry.