Toronto-based IMAX reported its Q2 earnings this week, with the company beating industry expectations with improvement in all major areas. The specialist in large-format exhibition showed a $98 million increase in Q2 global revenue, posting a net profit of $8.35 million compared with a loss of $2.85 million in last year’s second quarter. Box office sales came in at $268 million, an 8% year-over-year increase.
These increases are significant, and beat expectations from most industry analysts, causing a sudden jump in the price of the company shares. It also helped that this quarterly report coincides with a surge in media attention surrounding Christopher Nolan’s OPPENHEIMER, filmed using IMAX technology and optimized for viewing at its theatres.
Not only will this film’s success lift third-quarter revenues, but it also highlights the appeal of IMAX’s cinematic experience. Many see the post-pandemic market as perfectly suited to IMAX, with audiences seeking out an in-theatre experience emphasizing impressive visual and sound effects.
In the quarterly earnings call with investors, IMAX CEO Rich Gelfond addressed concerns surrounding the Hollywood actors’ and writers’ strike. Gelfond expressed confidence that IMAX’s Q4 slate would not be impacted, theorizing that studios would not want to move films such as sequels to DUNE and AQUAMAN that have already finished shooting and set release dates.
Gelfond sees an opportunity for successful runs by internationally produced titles such as anime features and live concerts, if necessary, to fill gaps in the 2024 calendar if the strike forces studios to postpone major releases.