IMAX’s Post

Transcript

Shares of IMAX are rising, the company saying it expects to deliver on the high end of its full year. Installation guidance to discuss Richard Gelfond joining us, he CEO of IMAX. Richard, it's good to see you. So installation guidance is what it seems is one of the things that the Street is focusing on. I know you're also focusing on profitability and sort of our recovery that is unfolding a little quicker than you expected in the theatrical business. Can you give me a little bit more color on on what you're seeing out there? Well, I'd say for IMAX, last year was really a recovery year. Imax's box office last year was equal to 2019, which was our best year in our history. So we're not a theatrical company. What we are is, is a platform that has the the best out of home content in the world. So yes, movies, Hollywood movies are a big part of it. Local language movies are a big part of it. Live content is a big part of it. We did the Olympics this year, for example, the opening ceremony on the fact we're in 90 countries and 2025 looks very much like an inflection year. As part of our earnings call, we gave guidance out about $1.2 billion in box office and things are going extremely well, you know, coming off of last year with Oppenheimer and earlier this year. With June, IMAX is just something people seek out to do something special and premium is over indexing and that's showing itself in growth in a lot of areas. All of that said, Richard, we did see a decline year over year in revenue. When do you expect that to start to reaccelerate? Well, that's more or less George, just a year of 1/4 over quarter thing. In the same quarter last year we had Oppenheimer which was one of the best IMAX films of all time. If you look at the quarter, our overall, it was our third best third quarter and our 55 year history. So I don't think it's particularly meaningful because it's just last year was so great. It fell a little short of that, but it was still a very good quarter. Gotcha. And and Speaking of Oppenheimer, I noticed on the call you also. Talked about new sort of IMAX shooting technology that's going to be used in a new project from Christopher Nolan. I was curious to just get a little bit more information on that and then what that is going to mean for the business. So as you know, Chris Nolan is always trying innovative things. And if you go back, whether you always tenant, which he shot backwards, the whole idea of of using IMAX cameras for so much of the movies, he always comes up with kind of not only a new story, which is amazing, but a new way of telling that story. And he approached us, I don't know, about a year ago and said he really wants to create. On some new technology that he's going to use in this movie and we worked with him and our team did a phenomenal job. And it's up to him to talk about the specifics, but he'll be able to do things, you know, in IMAX that we've never been able to do before. Well, I look forward to getting more details and seeing that project. Finally, I want to ask you about China. As you mentioned, you guys really have a global business. In fact, it's my understanding the biggest percentage of your revenue is from Asia broadly. What are you seeing in in China bookings and China installations given that of course you know, a lot of companies have talked about some struggles there? Well, we signed one of the largest deals in our history for new theaters and upgrades earlier this year with Wanda. And Wanda had been acquired, which is our largest partner in China, represents about half our network and in all its facets, it was for around over 100 theaters between upgrades and new theaters. So that was very positive. The box office in China has been somewhat challenged this year and it's a combination. Of not the right kind of movies and the economies. So as you know, I know you guys have reported about it a lot. The government's done a lot to stimulate the economy there. And I think we'll see the results of that, you know, shortly. Also, they've started to release the titles in China coming out next year and there are versions of blockbuster sequels, other things like that. And we expect China to be significantly better. For us in 25 than it was in 24 both because of the macro changes going on, but specifically because of the film site that's coming. And I guess I have to add that to 25 film slate, You know, globally in the US is is extremely strong and those films will also play in China. So in addition to the local language on the strength of the Hollywood slate will also be a positive driver. Thanks so much. Good to see you, Richard. Up on IMAX CEO, Appreciate it. Nice to see you too. Take care. Thanks.