IMAX CHINA REPORTS FULL-YEAR 2021 FINANCIAL RESULTS
GREATER CHINA HIGHLIGHTS
(Note: Percentage and other changes refer to full-year 2020 unless otherwise noted)
IMAX China delivered a strong revenue rebound to US$113 million for the full-year of 2021,up 116% year-on-year,driven by recovery in box office and installation activities.
Technology sales and maintenance revenue of US$73 million was 3% higher than that of 2019 and in line with management guidance.
A profitability turnaround to US$42 million adjusted net profit,compared to US$4.6 million net loss in 2020.
Record local language box office of US$150 million underpinned by record-breaking Chinese New Year opening weekend and National Day Holiday box office and 5 Filmed for IMAX titles.
The Company reported significantly increased indexing across both local language and Hollywood blockbusters,including 'Detective Chinatown 3','The Battle at Lake Changjin','Dune' and 'No Time to Die'. Among which,'The Battle at Lake Changjin' – Filmed for IMAX – becomes China's highest-grossing title of all-time.
The IMAX China network reached 783 systems as of December 31,2021. Including 215 in the backlog,Greater China contracted network reaches a 1,000-theater milestone.
Approval of a final dividend of approximately US$9.2 million (US$0.027 per share) on an increased payout ratio of 50%,up from the 33% it had paid out during the pre-COVID years of 2017 to 2019.
SHANGHAI,Feb.24,2022 -- IMAX China Holding,Inc. ("IMAX China" or the "Company",HKSE: 1970) today reported full-year 2021 Greater China revenue of US$113 million,driven by strong box office recovery and increased installation activities. Adjusted net profit reached US$42 million,compared to US$4.6 million net loss in full-year 2020. For adjustments to profit (loss) for the period and a full detail of financial results,please refer to the full-year results announcement posted with the Hong Kong Stock Exchange or on the Investor Relations section of the IMAX China web site (http://www.imax.cn/investor).
"IMAX is a premier,global technology platform for entertainment,and we create must see events around world class content with unmatched clarity,sound,scope and scale" said Richard L. Gelfond,Chairman of IMAX China. "Our emphasis on working with the best directors to infuse IMAX DNA into their blockbuster productions has been embraced,driving significantly higher indexing across both local language and Hollywood blockbusters,positioning us well to capitalize on an outstanding 2022 film slate. The phenomenal success of 'Filmed for IMAX' titles,namely Detective Chinatown 3 and The Battle at Lake Changjin,led to our record-breaking local language box office and propelled our strong financial performance in 2021."
"We ended with full-year revenue and earnings almost recovering to pre-pandemic levels despite a limited Hollywood slate," said Edwin Tan,CEO of IMAX China. "As theatrical entertainment becomes increasingly blockbuster-driven,IMAX China is uniquely positioned to benefit given our premium brand,network and technology. Exhibitors continue to see the value IMAX brings to their business as our Greater China contracted network reachesa 1,000-theater milestone. Our strengthening footprint in local language programming demonstrates the large untapped potential for IMAX China to further gain market share as local content gravitates towards high-production value genres. We look forward to building on the momentum as we capitalize blockbuster movie-going,and a strong pipeline empowered with IMAX DNA in the upcoming years."
IMAX China Dividend
IMAX China today announced that its Board of Directors approved the payment of a final cash dividend of US$0.027 per share,or approximately US$9.2 million in total,based on the total number of shares in issue as of December 31,2021. The dividend payment is based on an increased payout ratio of 50% of net income from 2021 onwards,up from 33% during the pre-COVID years of 2017 to 2019.
Network Update
The Company delivered further network expansion with a total of 783 systems in the IMAX® theatre network in Greater China as of December 31,2021,of which 392 operate under full revenue sharing arrangements,111 under hybrid revenue sharing arrangements and 280 operate under sales arrangements. The Company installed 57 theater systems during full-year 2021,up from 42 installations in 2020.
The Company signed agreements for 25 theater systems for the full-year 2021,bringing total backlog to 215 systems as of December 31,2021.
Greater China Key Metrics
Twelve months ended Dec 31,
2021
2020
Greater China Signings
Sales
9
20
Revenue Share
9
1
IMAX Laser Upgrade
2
17
Sales renewals
5
Total
25
38
Greater China Theatre Installations
Sales
20
15
Revenue Share
24
21
IMAX Laser Upgrade
Relocations
5
8
3
3
Total
57
42
Greater China Network
Commercial Multiplex
768
729
Institutional
15
16
Total
783
745
Greater China Backlog
215
251
IMAX Greater China Box Office
US$239.5 million
US$99 million
Film Count
Mainland China
34
25
HK/ Taiwan Only
16
8
Total
50
33
Conference Call
The Company will host a conference call today at 8:00 AM Hong Kong Time to discuss its full year 2021 financial results. To access the call via telephone,interested parties in the US and Canada should dial (800) 289-0720 approximately 5 to 10 minutes before the call begins. Hong Kong callers should dial 800-961-245 and other international callers should dial (647) 484-0258. The conference ID for the call is 3170737. A replay of the call will be available via webcast at www.imax.cn/investor/l-en or via telephone by dialing (888) 203-1112 (US and Canada),or (647) 436-0148 (international). The Conference ID for the telephone replay is 3170737.
About IMAX China
IMAX China is a subsidiary of IMAX Corporation,and was incorporated as a limited liability company 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. Shares of IMAX China trade on the Hong Kong Stock Exchange under the stock code "1970."
About IMAX Corporation
IMAX Corporation,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 utilizing IMAX theatres to connect with audiences in extraordinary ways,and,as such,IMAX's network is among the most important and successful theatrical distribution platforms for major event films around the globe.
IMAX Corporation is headquartered in New York,Toronto and Los Angeles,with additional offices in London,Dublin,Tokyo,and Shanghai. As of December31,there were 1,683IMAX Theater Systems operating in 87 countries and territories,including 1,599 commercial multiplexes,12 commercial destinations,and 72 institutional locations.On October 8,2015,shares of IMAX China,a subsidiary of IMAX Corporation,began trading on the Hong Kong Stock Exchange under the stock code "1970".
IMAX®,IMAX® 3D,IMAX DMR®,Experience It In IMAX®,An IMAX 3D Experience®,The IMAX Experience®,IMAX Is Believing® and IMAX nXos® are trademarks of IMAX Corporation. More information about IMAX Corporation 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).
