IMAX China Reports Half-year 2018 Results
GREATER CHINA HIGHLIGHTS
Strong first half financial results driven by compelling mix of Hollywood and Chinese language titles,continued network expansion and ongoing cost discipline,which the Company believes will continue to drive earnings in the future.
Delivered first half 2018 adjusted net income of US$21.3 million,a 20% increase compared to the same period,last year,while adjusted net income margins increased 700 basis points to 41.3%.
The Company's recent programming refinements—which are aimed at remastering more local-language content—helped drive US$190 million of IMAX China box office,a 13% increase compared to the first half,last year and the Company's fourth consecutive quarter of box office growth.
Announced approval for payment of an interim dividend for the first half of 2018 of approximately US$6.8 million (US$0.02 per share).
SHANGHAI,July 26,2018 -- IMAX China Holding,Inc. ("IMAX China,")(HKG: 1970) today reported first half 2018 Greater China revenue of US$51.5 million and gross profit of US$37.0 million,or 71.9% of revenues. This compares to revenue of US$51.6 million,gross profit of US$32.6 million,or 63.1% of revenues in the first half of 2017. Adjusted profit for the first half of 2018 came in at US$21.3 million,an increase of 20%,compared to the first half,last year. Adjusted profit margins also increased 700 basis points to 41.3%.
For adjustments to profit for the period and a full detail of financial results,please refer to the corporate filing posted with the Hong Kong Stock Exchange or to the earnings results posted on the Investor Relations section of the IMAX China web site (http://www.imax.cn/investor).
"Our strong first half results benefited from our differentiated consumer experience,continued network expansion and refined programming strategy,which is focused on remastering more Chinese titles. These factors,coupled with the compelling mix of blockbuster content and our ongoing focus on controlling costs,drove adjusted net income of US$21.3 million,a 20% increase compared to the first half," said Richard L. Gelfond,Chairman of IMAX China. "In addition to our strong financial performance,we also executed several strategic achievements,including the launch of IMAX® with Laser,which combines our best-in-class laser projection technology with our immersive 12 channel sound system,creating the most immersive IMAX experience yet. We believe our refined programming strategy,continued network expansion and the introduction of IMAX® with Laser will further increase the differentiation of IMAX and grow the earnings power of our business."
Network Update
The Company continued to see strong demand for new IMAX theatres in the first half of 2018. The Company signed agreements for 34 theater systems in the first half of 2018,bringing backlog as of June 30,2018 to 318 theater systems,139 of which are for full revenue sharing arrangements.
The Company also installed 25 new theatre systems in the first half of 2018,compared to the 36 installations in the first half of 2017. There were 569 systems in the IMAX theatre network in Greater China as of June 30,2018,of which 552 were in commercial multiplexes. Currently,275 of these theatres operate under full revenue sharing arrangements,82 under hybrid revenue sharing arrangements and 195 operate under sales arrangements.
Box Office Update
A compelling mix of Hollywood and local-language blockbusters drove IMAX China gross box office of US$190 million in the first half of 2018,compared with US$167 million in the prior-year period,an increase of 13%.
In the second half of 2017,the Company refined its programming strategy,which focused on introducing more local-language films into the slate. The recent results of this strategy have been encouraging and the Company intends to build on its strategy of remastering more Chinese content.
Greater China Key Metrics
Six Months ended June 30
1H 2018
1H 2017
Greater China Signings
Sales
5
43
Revenue Share
29
40
Total
34
83
Greater China Theatre Installations
Sales
8
12
Revenue Share
17
24
Total
25
36
Greater China Network
Commercial Multiplex
552
443
Institutional
17
17
Total
569
460
Greater China Backlog
318
381
IMAX Greater China Box Office
US$190 million
US$167 million
Film Count
PRC
18
19
HK/ Taiwan Only
5
2
Total
23
21
Conference Call
The Company will host a conference call today at 7:30 AM Hong Kong Time to discuss its half-year 2018 financial results. To access the call via telephone,interested parties in the US and Canada should dial (866) 548-4713 approximately 5 to 10 minutes before the call begins. Hong Kong callers should dial 800-961-105 and other international callers should dial (647) 484-0477. The conference ID for the call is 1956058. A replay of the call will be available via webcast at www.imax.cn/investor/l-enor via telephone by dialing (888) 203-1112 (US and Canada),or (647) 436-0148 (international). The Conference ID for the telephone replay is1956058.
About IMAX China
IMAX China is a subsidiary of IMAX Corporation,and is incorporated under the laws of Cayman Islands. IMAX China was established by IMAX Corporation specifically to oversee the expansion of IMAX's business throughout Greater China. IMAX China trades on the Hong Kong Stock Exchange under the stock code "HK1970."
AboutIMAX Corporation
IMAX,an innovator in entertainment technology,combines proprietary software,architecture and equipment to create experiences that take you beyond the edge of your seat to a world you've never imagined. Top filmmakers and studios are utilizingIMAXtheatres to connect with audiences in extraordinary ways,and,as such,IMAX'snetwork is among the most important and successful theatrical distribution platforms for major event films around the globe.
IMAX is headquartered in New York,Toronto and Los Angeles,with additional offices in London,Dublin,Tokyo,and Shanghai. As of June 30,there were 1,410IMAX theater systems (1,314 commercial multiplexes,12 commercial destinations,84 institutional) operating in 79countries. On Oct. 8,2015,shares of IMAX China,a subsidiary of IMAX Corp.,began trading on the Hong Kong Stock Exchange under the stock code "HK.1970."
IMAX®,IMAX® 3D,IMAX DMR®,Experience It In IMAX®,An IMAX 3D Experience®,The IMAX Experience® and IMAX nXos® are trademarks of IMAX Corporation. More information about the Company can be found at www.imax.com. You may also connect with IMAX on Facebook (www.facebook.com/imax),Twitter (www.twitter.com/imax) and YouTube (www.youtube.com/imaxmovies).
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This press release contains forward looking statements that are based on IMAX management's assumptions and existing information and involve certain risks and uncertainties which could cause actual results to differ materially from future results expressed or implied by such forward looking statements. These risks and uncertainties are discussed in IMAX's most recent Annual Report on Form 10-K and most recent Quarterly Reports on Form 10-Q.
