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IMAX Generates Record Gross Box-Office Revenues in 2019

Zacks Equity Research

IMAX Corporation IMAX is witnessing a terrific 2019. The company recently announced that it generated gross revenues of more than $1.035 billion as of Dec 17, at the global box-office, a record in its history.

The figure comfortably surpassed the 2018 box-office gross revenues of $1.032 billion. The top-line figure is expected to increase further in the remaining two weeks of the year, primarily owing to the release of Disney’s DIS Star Wars: The Rise of Skywalker movie.

IMAX’s scintillating performance can be attributed to blockbuster Hollywood titles, including Avengers: Endgame, Fast and Furious Presents: Hobbs and Shaw, The Bravest, Spider-man: Far from Home and The Lion King.

Moreover, Chinese titles like Wandering Earth and Ne Zha helped IMAX create a new box-office record in China with revenues of $341 million.

Further, in Japan, IMAX had its highest-grossing release with Bohemian Rhapsody and highest-grossing, local-language release with Weathering With You.

Additionally, International box-office revenues (excluding China) were $368.6 million to date, with record collections in 22 countries, including India, Japan, France, Germany and more.
 

IMAX Corporation Price and Consensus

 

Strong Slate of Movie Releases to Aid 2020 Growth

For 2020, IMAX is expected to benefit from a strong slate of releases. No Time to Die (latest James Bond movie; spring 2020), Wonder Woman: 1984 (summer 2020), Top Gun: Maverick, Tenet and Detective Chinatown 3 are some of the movies that have been shot in IMAX.

Notably, five of the top ten highest-grossing IMAX films in 2019 to date featured IMAX DNA, which means they were either filmed in IMAX or featured IMAX expanded aspect ratio to deliver up to 26% more picture.

Additionally, IMAX’s expanding footprint in China is a key catalyst. As of Sep 30, IMAX had 681 theaters operating in Greater China, of which 666 were commercial multiplexes. Moreover, 286 theaters are scheduled to be installed by 2022.

The company’s focus on expanding footprint in its largest market is evident from its largest, single, international partnership with Wanda Film for 359 theater systems in Greater China.

Also, IMAX inked a deal with South Korean cinema chain CGV to add 40 new theaters in Greater China. This deal primarily focuses on Tier 1 and Tier 2 markets in China and is expected to boost demand for IMAX with Laser.

Notably, CGV is IMAX’s third-largest exhibitor partner globally by the number of systems and the company’s second-largest client in China.

Moreover, IMAX’s relationship with Maoyan, China's largest Internet-based entertainment platform, is a key catalyst.

Zacks Rank & Stocks to Consider

IMAX currently has a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader consumer discretionary sector are Charter Communications CHTR and Shaw Communications SJR. Both carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rate for Charter and Shaw is currently pegged at 38% and 4.5%, respectively.

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Click to get this free report The Walt Disney Company (DIS) : Free Stock Analysis Report Shaw Communications Inc. (SJR) : Free Stock Analysis Report Charter Communications, Inc. (CHTR) : Free Stock Analysis Report IMAX Corporation (IMAX) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research