Imax Reports Strong Q4 Earnings Driven by Rising Revenues

Imax announced its fourth-quarter earnings on Wednesday, showcasing a significant increase in net earnings fueled by rising overall revenues.

Blockbuster Performances Boost Revenue

The latest financial period saw major tentpole releases like Gladiator II, Venom: The Last Dance, and Mufasa: The Lion King performing exceptionally well on Imax screens. In contrast, the same period last year featured hits such as Aquaman and the Lost Kingdom, Taylor Swift: The Eras Tour, and Wonka on the company’s expansive cinema technology network.

Financial Highlights

For the fourth quarter, Imax reported total revenues of $92.7 million, marking an 8% increase from $86 million in the previous year. As Hollywood continues to recover from the pandemic, Imax is poised to capitalize on the growing demand for new and upgraded theater systems globally.

Net Income Growth

The large-format exhibitor achieved a net income of $5.2 million, a notable rise from $2.5 million during the same quarter last year. The adjusted per-share profit for Q4 reached 27 cents, a significant improvement compared to 11 cents per share from the previous year.

Expansion Plans for 2024 and Beyond

Looking ahead to full-year 2024, Imax reported the installation of 146 new and upgraded Imax systems worldwide, exceeding its earlier guidance of 120 to 150 systems. For 2025, the company anticipates a record box office exceeding $1.2 billion and plans to install between 145 to 160 systems.

Strategic Partnerships and Innovations

“In 2024, Imax further solidified its position at the heart of global entertainment by expanding our network of filmmakers, enhancing our studio marketing, achieving the high end of our installation guidance, and innovating our programming,” stated Imax CEO Richard Gelfond following the release of the fourth-quarter financial results. He highlighted a significant deal with Netflix for the release of Greta Gerwig’s Narnia across the Imax global network ahead of its streaming debut.

Exclusive Release Window with Netflix

During a post-market analyst call, Gelfond elaborated on the partnership with Netflix for a global release of Narnia two weeks prior to its streaming premiere in late 2026. He emphasized that Imax secured a four-week window for a film that might have otherwise gone directly to streaming, noting Netflix’s recognition of Imax’s ability to create blockbuster events.

Commitment to Exclusive Screenings

As part of the agreement, Imax will have a four-week window for Narnia before its Netflix debut, with a commitment to screen the film exclusively for two weeks starting on Thanksgiving Day 2026.

Industry Perspectives

Earlier on Wednesday, Cinemark CEO Sean Gamble, whose cinema circuit includes Imax screens, expressed a desire for a “more full wide release” of Narnia, rather than what he perceived as a promotional effort ahead of a crowded Christmas 2026 box office.

Optimism for the Chinese Market

On the analyst call, Gelfond also noted a resurgence in the Chinese box office following a sluggish previous year. “We are optimistic about the year ahead in China. The underlying demand for movies is strong, local film production budgets are increasing, and government support for the industry is at an all-time high,” he shared with analysts.

Record-Breaking Performance in China

Amid a record-breaking Chinese New Year slate, Imax has already seen five films generate $130 million at the box office, nearly doubling the previous record of $66 million set in 2023.

Persons

Richard Gelfond, Greta Gerwig, Sean Gamble

Company Names

Imax, Netflix, Cinemark

Titles

Gladiator II, Venom: The Last Dance, Mufasa: The Lion King, Aquaman and the Lost Kingdom, Taylor Swift: The Eras Tour, Wonka, Narnia

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