IMAX Corporation has inked a significant deal with French exhibition company, MEGARAMA, to introduce three cutting-edge IMAX with Laser systems in various regions of France. This strategic partnership marks an exponential growth for IMAX with a doubled presence in collaboration with the Paris-based exhibitor.
IMAX’s Premium Offering in France
Among the planned IMAX theaters, one is set to grace a major northern French city in 2025, while the other two will be strategically positioned in the suburbs of Paris with an expected launch in 2026. This expansion underlines the surging demand for IMAX’s premium cinematic experience among both French audiences and exhibitors.
The agreement with MEGARAMA follows a stellar performance in 2023 for IMAX in France, where record-breaking box office revenues of over $23 million were achieved, marking the highest annual total ever in the country. Bolstered by the blockbuster ‘Dune: Part Two,’ the first quarter of 2024 emerged as the company’s second-best quarter in France.
The newly established IMAX locations will feature IMAX with Laser, the most advanced projection and audio system of the company, promising unparalleled visual clarity and immersive sound quality. This partnership elevates the total count of IMAX and MEGARAMA-operated venues in France to six, with additional expansion plans in neighboring Morocco.
Global Expansion Initiatives
Widening their global footprint, IMAX has embarked on a string of expansion deals across various markets in Asia, solidifying its stronghold in key international territories. The company’s proactive approach aims at enhancing its premium movie offerings to cater to diverse global audiences.
Highlights include an extension of the partnership with SM Cinema in the Philippines, facilitating the introduction of 10 new IMAX with Laser systems, spanning three new locations and upgrades to seven existing venues. Turkey is slated for its first IMAX experience through a four-theater deal with CineNOVA, ushering in cutting-edge IMAX with Laser systems in cities like Istanbul and Ankara between 2024 and 2026.
Furthermore, IMAX’s largest Indian expansion in five years materializes through a three-theater contract with Miraj Cinemas, starting in Mumbai by the second half of 2024, followed by locations in Jaipur and another city. In Thailand, an extended collaboration with Major Cineplex will introduce three additional IMAX with Laser venues, positioning Bangkok’s Bang Kapi district as a focal point in 2024, complemented by two more Bangkok openings in 2026 and 2027.
This wave of international agreements showcases IMAX’s commitment to delivering state-of-the-art sight and sound technology to a broader global audience, ensuring relevance in an evolving landscape dominated by streamed content.
Financial Outlook and Market Position
The Zacks Consensus Estimate for IMAX’s 2024 revenues indicates a year-over-year increase of 0.32%, totaling $376.06 million, while the 2024 earnings per share estimate points to a modest decline of 3.19%, pegged at 91 cents.
Presently, IMAX holds a Zacks Rank #3 (Hold). Within the broader Consumer Discretionary sector, investors might consider stocks like Nexstar Media Group, Netflix, and JAKKS Pacific, each boasting a Zacks Rank #1 (Strong Buy). Nexstar Media Group exhibits a 10% long-term earnings growth rate, while Netflix and JAKKS Pacific showcase growth rates of 22.58% and 42.61%, respectively.