Imax China executives upbeat on China's record-breaking success
Imax China, a subsidiary of IMAX Corporation, reported on Thursday full-year revenue of $73.3 million in Greater China in 2022, with reported and adjusted net profit of $10.8 million and $12.4 million, respectively. Top executives at the company expressed high hopes for 2023.
These achievements were made despite the significant impact of COVID-19 shutdowns and limited supply of content.
Richard L. Gelfond, chairman of Imax China, said: "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,' along with record-breaking Chinese New Year box office, offering further proof of strong pent-up demand for The Imax Experience."
"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," he added.
During a conference call held Thursday to discuss the 2022 financial results, Gelfond stated that he expects this year's box office results for Imax in China will recover to pre-COVID-19 pandemic levels in 2019.
The company got off to a record-breaking start to 2023 with Imax Chinese New Year box office of 231 million yuan, up 54% year-on-year, led by "The Wandering Earth 2," which is now the highest-grossing local language film of all time in Imax. In addition, Imax China achieved over $52 million of box office for "Avatar: The Way of Water" and a 22% indexing — a record for a first-run Hollywood release in China. So far this year, Imax has delivered over $86 million in box office on the Chinese mainland, more than 50% of the full-year 2022 box office, with a market share of 4.4%, up from 2.2% during the same period in 2022.
"I'm very excited to join Imax China as we start an important year of recovery," said Daniel Manwaring, the new CEO of Imax China. "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."
He added, "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, an industry leader providing the giant screen system for premium large-format auditoriums, has continued to expand its network, with a total of 794 systems as of Dec. 31, 2022.