Imax posts sharply higher Q3 profits on network growth

The profit jump comes as the Canadian exhibitor continues to move closer to Hollywood, in both its technology and film offerings, to differentiate itself from competitors at the local multiplex.
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Imax Corp. posted another impressive financial quarter Thursday as it points to a critical mass of international theaters through which blockbuster Hollywood movie titles are pulling in audiences.

Toronto-based Imax saw profits for the three months to September 30 nearly double to $14.9 million, against earnings of $8.4 million in 2011.

Combined revenues rose 20% to $80.7 million as systems revenue rose 25% to 25.4 million, revenue from joint venture theater deals operated with other exhibitors rose 31%  percent to $13.2 million and production and digital re-mastering revenues, in part to supersize Hollywood titles, increased 35.6% to $25.2 million.

The earnings growth at Imax comes as the Canadian exhibitor continues to move closer to Hollywood, in both its technology and film offerings.

“We are… seeing an increase in demand from filmmakers who want to take advantage of our differentiation opportunities, whether it be using our Imax cameras, or specially formatting their movies for Imax, or using an early release window in Imax to further promote their film,” Imax CEO Richard Gelfond said Thursday in a statement.

“This ability to work closely with studios and directors, taken together with our strong brand and our end-to-end approach to our business, continues to set us apart and positions us well to create a unique experience that consumers cannot get anywhere else,” he added.