IMAX: Q4 Earnings Snapshot - A Record-Breaking Year Ahead

As the curtains close on 2024, IMAX Corporation (NYSE: IMAX) takes a bow, delivering a strong performance in the fourth quarter and setting the stage for a record-breaking year ahead. The global entertainment platform reported a Net Income of $5 million (+112% YoY) and EPS of 10 cents (+100% YoY) in Q4, capping off a full year with Net Income of $26 million (+3% YoY) at a 7.4% margin. With a total of 146 system installations in 2024, IMAX is poised to continue its growth trajectory in 2025.



The company's success can be attributed to several key factors:

1. Diversified Content Portfolio: IMAX's strategy of offering a richly diversified content portfolio, featuring both Hollywood and local language blockbusters, has proven to be a winning formula. In Q4, the company rode the success of male-skewing blockbusters like "Gladiator II" and "Venom: The Last Dance," along with holiday audiences for Disney's "Mufasa," to a strong $93 million in revenue.
2. Strategic Partnerships: IMAX's strategic partnerships with major studios and filmmakers have further strengthened its position in the global entertainment landscape. The deal with Netflix for the release of Greta Gerwig's "Narnia" across the IMAX global network in advance of its debut on the service is a prime example of the company's ability to leverage its platform to reach new audiences.
3. Premium Theatrical Experiences: IMAX's commitment to delivering premium theatrical experiences has driven demand for its auditoriums. In 2024, the company installed 146 new auditoriums, bringing its total installments to 1,735 systems (+2.5% YoY) with a backlog of 440 systems.

Looking ahead to 2025, IMAX projects a record box office exceeding $1.2 billion and a Total Adjusted EBITDA margin of 40%+, with planned installations of 145-160 systems. The company has already set a box office record during the Chinese New Year with $130 million, up 90% from the previous best. This dramatic turnaround in China, combined with the strategic Netflix partnership for 'Narnia', positions IMAX at the intersection of theatrical and streaming content, opening up new revenue streams while maintaining its premium positioning.



In conclusion, IMAX's strong Q4 and full-year 2024 results, coupled with its ambitious projections for 2025, indicate that the company is well-positioned to capitalize on the growing demand for premium theatrical experiences and the intersection of theatrical and streaming content. With a diversified content portfolio, strategic partnerships, and a commitment to delivering premium experiences, IMAX is poised to continue its record-breaking streak in the years to come.