IMAX reports sharp drop in first quarter earnings with no Star Wars or Deadpool

IMAX Corp (NYSE:IMAX) posted a drop in first quarter earnings on a weaker box office compared to a year ago when Star Wars:The Force Awakens and Deadpool were released on its screens.

The giant movie screen operator reported net income attributable to shareholders of US$75,000 compared to US$11.4mln, while revenue fell to US$68.6mln from US$92.1mln.

Gross box office from digitally-remastered movie titles on IMAX screens dropped to US$212.1mln from US$272mln a year ago. It had some tough comparison as the previous year saw the successful release of Star Wars Episode VII, Batman v. Superman and Deadpool. 

The lower box office performance and a US$3.4mln write-down in its film distribution business pushed gross margins down to 52.1% from 56.6%

Total theatre signings rose slightly to 39 screens from 36 a year earlier.

Earlier this month the company signed a 25-theatre agreement with Odeon Cinemas Group, including its Nordic Cinema Group subsidiary. The grop also announced a 40-theatre deal with Omnijoi Cinemas, the third-largest IMAX exhibitor partner in China.

“In addition to significantly expanding our network and backlog, we are beginning to execute against several new promising business initiatives,” said chief executive Richard Gelfond.

“We launched our flagship IMAX VR Centre in Los Angeles, announced our first-ever Hollywood VR slate deal with Warner Bros., and kicked off production with Marvel and ABC Studios on Marvel’s Inhumans, which will debut exclusively in IMAX theaters in early September.

“We’re encouraged by the progress we’re seeing across these fronts and believe 2017 will serve as a key inflection point for IMAX as our business expands beyond box office.”

Story by ProactiveInvestors