Summer blockbusters such as Disney’s “The Lion King” and Sony’s “Spider-Man: Far From Home” lifted earnings at Imax during the big screen company’s most recent fiscal quarter and put it on a path to achieving record grosses in 2019.
Imax reported revenue growth of 5.2% to $86.4 million on earnings attributable to shareholders of $9 million, an 80% year-over-year improvement. Adjusted net income hit 21 cents per share, up from 14 cents in the year-ago quarter, with adjusted EBITDA topping out at $32.4 million, an increase from $25.8 million. Profits trumped Wall Street’s expectations even as revenue fell short. Consensus estimates were for the company to log earnings per share of 20 cents on $87.6 million in revenue.
Imax has invested heavily on the Chinese market, signing numerous theater deals in the country. Trade tensions have started to cause headaches for some Hollywood players, but Imax said the market is still an important one. In China, the company’s box office take is up 275 in local currency.
Imax commercial theatre network grew 9%, thanks to signings across the United States, the United Kingdom, France, India, Japan, Malaysia, and the Middle East. Looking ahead, the upcoming quarter will see the release of Disney’s “Star Wars: Rise of the Skywalker,” a sci-fi epic that should play well with Imax’s core base of fanboys and fangirls. The company also said that in 2020, several Hollywood blockbusters, including the James Bond sequel “No Time to Die” and Christopher Nolan’s “Tenet” will deploy its cameras. Historically, that kind of relationship has helped bolster Imax’s share of box office receipts.
Shares of Imax were up .10% to $21.00 in pre-market trading.