Imax unveils higher earnings, 120 theatre deal in China

The deal with Wanda Cinema will see the Canadian-based giant screen exhibitor open up more screens in the fast-growing Asian market.
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Imax and Wanda Cinema have expanded their partnership to open up to 120 new super-sized screens in China.

The latest agreement came ahead of Imax releasing its second quarter results Thursday, with earnings and revenues up.

Imax and Wanda, which now owns and operates AMC Theatres in the U.S. market, said the companies amended their 2011 joint revenue share agreement to now open as few as 40 and as many as 120 new theatres throughout China.

Terms of the deal were not disclosed, but expands Wanda’s total Imax screen commitment to as many as 210 screens currently operating or planned for the fast-expanding Chinese market.

During the second quarter to June 30, Imax posted earnings of $11.8 million, against a profit of $11.03 million in 2012.

Imax, which digitally re-masters Hollywood movies for release on its expanding global circuit, grossed box office from DMR titles at $219.7 million, which generated DMR revenue of $26 million for the giant screen exhibitor, or 11.8% of Imax box office.

“When you take into account the healthy backlog at the end of the second quarter, along with the substantial signing activity over the past few weeks, including last night’s Wanda/AMC announcement, the result is a strong pipeline for continued network expansion over the coming years,” Imax CEO Richard Gelfond said in a statement.