The box office powerhouses “Mufasa: The Lion King,” “Gladiator II,” and a re-release of Christopher Nolan’s “Interstellar” propelled Imax to new heights during the fourth quarter. Imax saw a remarkable 8% increase in revenues, reaching $92.7 million compared to $86 million in the previous year. Net income at the big screen giant more than doubled, surging to $5 million from $2.5 million. Imax’s earnings per share also saw a significant boost, reaching 27 cents from the 16 cents reported in the prior-year period.
However, following the quarterly results, Imax’s shares took a hit in after-hours trading, dropping nearly 5% as the company fell short of Wall Street’s expectations. Analysts had projected earnings of 29 cents per share and revenues of $104.8 million, leading to the market reaction.
Imax has carved out a niche with its special-effects-laden films that dominate the cinema landscape, positioning it well to benefit from any resurgence in box office activity. The industry has faced challenges due to the impact of COVID-19 and subsequent Hollywood labor strikes, but Imax remains optimistic as it looks to the future, particularly with a promising 2025 lineup that includes sequels to blockbuster franchises like “Mission: Impossible,” “Jurassic World,” and “Avatar.”
The company anticipates a record-breaking box office performance in 2025, targeting over $1.2 billion in revenues. With upcoming releases such as “Superman,” “F1,” and Marvel’s “Fantastic 4” filmed using Imax cameras, Imax continues to attract studios seeking to enhance the cinematic experience and drive ticket sales at its premium venues.
Imax’s CEO, Richard Gelfond, highlighted the increasing demand for Imax experiences among studios, with early booking of Imax release dates and long-term visibility demonstrating the industry’s confidence in the format. In key markets like China, Imax has enjoyed significant success, with the local hit “Ne Zha 2” becoming the top-grossing Imax release in the country, surpassing $111 million in box office earnings.
Looking ahead, Gelfond expressed optimism about the Chinese market, citing a growing demand for moviegoing, expanding local film production budgets, and government support as key factors driving Imax’s prospects in the region. Globally, Imax’s patented technology continues to attract new partnerships, with 146 systems installed in 2024 and a projected 145 to 160 new installations planned for the current year.
Imax’s commitment to delivering immersive cinematic experiences remains unwavering as it navigates the evolving landscape of the entertainment industry, setting the stage for continued success in the years to come.
