IMAX CHINA REPORTS FULL-YEAR 2022 FINANCIAL RESULTS
GREATER CHINA HIGHLIGHTS
(Note: Percentage and other changes refer to full-year 2021 unless otherwise noted)
Record-breaking start to 2023 with IMAX Chinese New Year box office of RMB231 million,up 54% year-over-year,led by 'The Wandering Earth 2'– now the highest-grossing local language film of all time in IMAX.
IMAX China captured over US$52 million of box office in 'Avatar: The Way of Water' and 22% indexing – a record for a first-run Hollywood release in China.
Year-to-date,IMAX delivered over US$86 million box office in mainland China,more than 50% of full year 2022 box office,with a market share of 4.4%,up from 2.2% during the same period of 2022.
2022 adjusted net profit of US$12.4 million despite the significant impact of Covid shutdowns and limited content supply.
Approval of a final dividend of approximately US$5.1 million (US$0.015 per share) on an earnings payout ratio of 50%,consistent with prior year.
SHANGHAI,Feb. 23,2023 --IMAX China Holding,Inc. ("IMAX China" or the "Company",HKSE: 1970) today reported full-year 2022 Greater China revenue of US$73.3 million,reported and adjusted net profit of US$10.8 million and US$12.4 million respectively. 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).
"We are pleased to see such a rapid turnaround as China reclaims the throne as the world's top theatrical market. Within two months of reopening,IMAX China has delivered two of its top three releases of all time with Avatar: The Way of Water and The Wandering Earth 2 and record-breaking Chinese New Year box office,offering further proof of strong pent-up demand for The IMAX Experience®," said Richard L. Gelfond,Chairman of IMAX China. "We look ahead at 2023 confident of reaccelerated growth as we capitalize on revitalized Hollywood content flow and an increasingly IMAX-friendly local film slate."
"I'm very excited to join IMAX China as we start an important year of recovery. Looking back on the last three years,it cannot be clearer that the pandemic has accelerated blockbusterization in both content consumption and creation which will continue to play in favor of IMAX China as the leading premium entertainment technology company. Our meaningful improvement in market share,expanding Filmed-for-IMAX content portfolio and growing adoption of IMAX with Laser has strengthened our positioning for long-term growth," said Daniel Manwaring,CEO of IMAX China. "I look forward to leading the Company to not only solidify its position as China's leading entertainment technology brand,but also taking it to new heights as we pursue new growth opportunities to further unlock the monetization value of our unique assets."
IMAX China Dividend
IMAX China today announced that its Board of Directors approved the payment of a final cash dividend of US$0.015 per share,or approximately US$5.1 million in total,based on the total number of shares in issue as of December 31,2022.
Business Development
On July 25,2022,IMAX China and IMAX Corporation entered into an Enhanced Business Required IMAX China Contribution Agreement pursuant to which IMAX China acquires and has the exclusive right to develop the IMAX Enhanced Business in Greater China.
Network Update
The Company delivered further network expansion with a total of 794 systems in the IMAX® theater network in Greater China as of December 31,of which 401 operate under full revenue sharing arrangements,112 under hybrid revenue sharing arrangements and 281 operate under sales arrangements. The Company installed 28 new,upgraded and relocated theater systems during full-year 2022,down from 57 installations in 2021.
The Company signed agreements for 20 theater systems for the full-year 2022,bringing total backlog to 204 systems as of December 31,2022.
Greater China Key Metrics
Twelve months ended Dec 31,
2022
2021
Greater China Signings
Sales
2
9
Revenue Share
9
9
IMAX with Laser Upgrade
3
2
Sales renewals
6
5
Total
20
25
Greater China Theater Installations
Sales
6
20
Revenue Share
13
24
IMAX with Laser Upgrade
Relocations
4
5
5
8
Total
28
57
Greater China Network
Commercial Multiplex
778
768
Institutional
16
15
Total
794
783
Greater China Backlog
204
215
IMAX Greater China Box Office
US$163 million
US$240 million
Film Count
Mainland China
25
34
HK/ Taiwan Only
20
16
Total
45
50
Conference Call
The Company will host a conference call today at 8:00 AM Hong Kong Time to discuss itsfull-year 2022financial results. To access the call via telephone,there is a new process: interested parties please pre-register here: https://register.vevent.com/register/BI7789e59f833342ee93408657686c8763 and you will be provided with a dial-in number and unique pin. To avoid delays,we encourage participants to dial into the conference call ten minutes ahead of the scheduled start time. A replay of the call will be available via webcast at investors.imax.com.
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 theaters 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 Dec 31,there were 1,716 IMAX Theater Systems (1,633 commercial multiplexes,12 commercial destinations,71 institutional) operating in 87 countries and territories.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® Dome,IMAX® 3D,IMAX® 3D Dome,Experience It In IMAX®,The IMAX Experience®,An IMAX Experience®,An IMAX 3D Experience®,IMAX DMR®,DMR®,Filmed For IMAX™,IMAX LIVE™,IMAX Enhanced™,IMAX nXos®,SSIMWAVE® and Films to the Fullest®,are trademarks and trade names of the Company or its subsidiaries that are registered or otherwise protected under laws of various jurisdictions. For more information,visit www.imax.com. You may also connect with IMAX on Instagram (www.instagram.com/imax),Facebook (www.facebook.com/imax),Twitter (www.twitter.com/imax),YouTube (www.youtube.com/imaxmovies)and LinkedIn (www.linkedin.com/imax).
This press release contains forward looking statements that are based on IMAX Corporation and IMAX China 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. Important factors that could affect these statements include,but are not limited to,references to future capital expenditures (including the amount and nature thereof),business and technology strategies and measures to implement strategies,competitive strengths,goals,expansion and growth of business,operations and technology,plans and references to the future success of IMAX Corporation,IMAX China or any other consolidated subsidiaries of IMAX Corporation (each,a "Group Member",and collectively,"IMAX Group") and expectations regarding the future operating,financial or technological results of any Group Member. These forward-looking statements are based on certain assumptions and analyses made by the IMAX Group in light of its experience and its perception of historical trends,current conditions and expected future developments,as well as other factors it believes are appropriate in the circumstances. However,whether actual results and developments will conform with the expectations and predictions of any Group Member is subject to a number of risks and uncertainties,including,but not limited to,risks associated with investments and operations in foreign jurisdictions and any future international expansion,including those related to economic,political and regulatory policies of local governments and laws and policies of the United States and Canada; risks related to IMAX Group's growth and operations in China; the performance of IMAX DMR films; the signing of theater system agreements; conditions,changes and developments in the commercial exhibition industry; risks related to currency fluctuations; the potential impact of increased competition in the markets within which any Group Member operates; competitive actions by other companies; the failure to respond to change and advancements in digital technology; one Group Member's largest customer accounting for a significant portion of its revenue and backlog; risks related to new business initiatives; conditions in the in-home and out-of-home entertainment industries; the opportunities (or lack thereof) that may be presented to and pursued by a Group Member; risks related to cyber-security; risks related to any Group Member's inability to protect its intellectual property; general economic,market or business conditions; the failure to convert theater system backlog into revenue; changes in laws or regulations; the failure to fully realize the projected cost savings and benefits from any Group Member's restructuring initiative; and other factors,many of which are beyond the control of any Group Member.These factors,other risks and uncertainties and financial details are discussed in IMAX Corporation's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
