Toronto-based IMAX today reported record revenue, earnings, and EBITDA in the first quarter on the strength of 3D blockbusters “Avatar” and “Alice in Wonderland.”
The records for IMAX in its 43-year history include a 120% increase in first quarter revenue to $72.8 mil. vs. $33.1 million in 1Q 2009, and adjusted EBITDA of $42 mil. in 1Q 2010 vs $7 mil. 1Q 2009.
Already in the second quarter, IMAX box-office grosses are up 78% vs 2009 ($30 mil. vs $16.8 mil.) even before the May 7 opening of anticipated hit “Iron Man 2” in 182 domestic IMAX theaters, albeit not in 3D, “Shrek Forever After” in 3D May 21, and “Toy Story 3” in 3D and “The Twilight Saga: Eclipse,” both in June.
IMAX Chief Executive Officer Richard L. Gelfond said he believes those movies portend longer-term benefits, including a record expansion of theatre deals for the company and “an increased level of tentpole movies being committed to the IMAX theatre network.”
IMAX also announced Thursday that the company signed contracts to add 41 theatre systems, more than all of fiscal 2009. The 41 theater additions include 19 joint revenue sharing system arrangements and 22 sales arrangements, of which 14 were digital system upgrades. This compares to a total of three system signings in the first quarter of 2009, all of which were system sales, and a total of 35 system signings for all of fiscal 2009. Since quarter-end, the Company has signed deals for another 13 theatre systems, many of which have been announced throughout the month of April.
As of March 31, 2010, 172 digital systems were in operation, compared to 73 as of March 31, 2009.
“Our customers continue to show interest in upgrading their theatres from film to digital,” Gelfond said. “Over the past 15 months, we have upgraded 35 film-based systems, and that pace has accelerated over the past six months. These digital upgrades will help to drive our box office revenue as well as that of our customers by maximizing the number of IMAX titles they can show.
Gelfond said in a conference call that traditional film prints cost more than $600,000 to convert to Imax, compared to a mere $200 with digital cinema.
Other elements of the company showed big gains as well:
- Total film revenue increased 275% to $29.3 million in 1Q 2010, compared to $7.8 million in the first quarter of 2009.
- Production and IMAX DMR(R) revenues increased to $23.5 million, compared to $3.7 million in the year ago period.
- Gross box office from DMR titles was $232.2 million in the first quarter of 2010, compared to $28.0 million in the first quarter of 2009.
IMAX has collected $231 mil. in box-office gross worldwide from “Avatar” thus far, by far the company’s top-grossing title. Of the $231 mil., $171.9 mil. was in 1Q, with a per-screen average in 179 domestic theaters since release of $714,000 and an average of $1,116,696 in theaters overseas. The company collected $58.9 mil. in worldwide box office to date from “Alice in Wonderland” ($51.6 mil. in 1Q), for a domestic per-screen average of $200,000 and, internationally, $242,000.
The 3D film “How To Train Your Dragon,” released in the last few days of the quarter on March 26, has generated $26.3 mil. in worldwide box office to date ($8.2 mil. in 1Q) for a per-screen average of $107,000.
Upcoming movies scheduled for IMAX include:
“Inception” in July
“Legends of the Guardian: The Owls of Ga’hoole” in 3D on Sept. 24
“Harry Potter and the Deathly Hallows: Part 1” in 3D on Nov. 19
“Tron Legacy” in 3D in December
Yesterday (Wednesday, April 28), IMAX announced a multi-picture deal with Warner Bros. Pictures to release up to 20 pictures in the IMAX format between 2010 and 2013, including “Harry Potter and the Deathly Hallows: Part II” in 3D on July 15, 2011; “Happy Feet 2” in 3D on Nov. 18, 2011; and “The Hobbit” in December 2012.
— By Scott Hettrick