Third quarter profits and revenue for Imax Corporation got a big boost from an increase in theater installations, the wide-screen company’s growing presence in China, and box office hits like “Mission: Impossible – Rogue Nation” and “Ant-Man.”
Quarterly revenue at the company rose 40% from the year-ago period to $85.1 million, while profits doubled to $10.5 million. That beat analyst estimates that had the company putting up revenue of $77.7 million. Adjusted earnings per share of 17 cents topped projections. Wall Street had been looking for earnings of 16 cents.
Much of the result was attributable to a growth in theater construction. Theater sales and leases added $26.6 million of income to the company’s balance sheet — compared to $6.6 million in the third quarter of 2014. The company built a dozen new full theater systems during the period, bringing its network to 1,008 systems.
In China, Imax successfully listed itself for public trading, resulting in an IPO windfall. Ticket sales in the People’s Republic also increased, rising from $48.4 million in the year-ago period to $70.4 million.
The financial report comes as Imax is gearing up for a fall season that will see the release of tentpole movies like “Spectre” and “Star Wars: The Force Awakens” that play to its core audience of fanboys.
“We believe the combination of our network growth, heightened levels of demand for The Imax Experience and our strong balance sheet will enable us to capitalize on the upcoming fourth quarter film slate, as well as the exciting film slates of 2016 and 2017,” Imax CEO Richard Gelfond said in a statement.
Shares of Imax were down .45% in after-hours trading to $38.17.