Pandemic Pushes Imax to $26 Million Second-Quarter Loss
Citing the affect of the COVID-19 pandemic, big display screen producer-exhibitor Imax has reported a $26 million second-quarter loss, or 44 cents a share, on revenues of $8.9 million.
Throughout the 2019 quarter, Imax had reported earnings of $11.four million, or 19 cents a share, on revenues of $104.Eight million. Wall Road analysts had anticipated a lack of 52 cents a share.
The corporate stated the outcomes replicate the closure of considerably the entire theaters within the firm’s international community, which decreased expertise community and upkeep income to basically zero. and The corporate accrued $3.2 million in payroll subsidies and tax credit from the Canadian and U.S. governments as a part of their COVID-19 reduction applications.
“As the one international theatrical platform for blockbuster leisure, Imax is uniquely advantaged as theaters start to reopen on a rolling foundation all through the world,” stated CEO Richard Gelfond. “Our mannequin provides us the pliability to reopen the place protected, program domestically related content material to maximise revenues, and play a management position because the business returns.”
Gelfond famous “early indicators” of progress, with roughly 40% of its community at present producing income, together with 409 Imax theaters in China, that are scheduled to debut Hollywood and native language movies over coming weeks. He stated the South Korean blockbuster “Peninsula” continues to carry out nicely throughout markets in Asia and Europe, drawing $26.5 million in international field workplace regardless of capability limitations and highlighting demand amongst moviegoers in lower-risk markets.
“We proceed to look forward to an exceptionally robust slate by way of 2021, as studios affirm their dedication to the theatrical launch by rescheduling their key blockbuster titles,” Gelfond stated. “We stay unwavering in our stance that the well being and security of audiences have to be the precedence as theaters reopen and we help by the work of native governments and our companions to place public well being first.”
Imax issued the earnings report Tuesday after the shut of the inventory market. As of June 30, there have been 1,615 Imax theater methods (1,527 industrial multiplexes, 13 industrial locations, 75 institutional) working in 81 nations and territories.
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