Proactive Investors - IMAX Corp (NYSE:IMAX) stock jumped after the global entertainment technology platform delivered its highest grossing first-quarter to date as it grew its market share to a record level.
In its 1Q earnings release, the Mississauga, Ontario-based company also said the three-month period to March 31, 2023, was its highest-grossing quarter ever for local language films.
The company reported a 45% jump in revenue to $86.9 million, with a gross margin of $50.1 million, resulting in adjusted underlying earnings of $27.3 million, up 85%.
Content Solutions revenues increased by 53% year-over-year to $32.1 million, while gross box office from IMAX locations jumped 58% to $273.4 million from a year earlier.
Notable contributors to its first-quarter box office performance included a record local language box office contribution of approximately 30%, driven by its highest-ever Chinese New Year holiday of $61.3 million, while “Avatar: The Way of Water” delivered over $109 million at the IMAX box office, bringing the run total to $250 million and making it IMAX's highest ever first-run release.
"IMAX is off to an extremely strong start in 2023, with extraordinary growth in system sales and global box office soaring to an all-time record in the first quarter," CEO Richard Gelfond said in an earnings statement.
"IMAX has already struck more deals for new and upgraded systems around the world in 2023 than it did in all of 2022, setting the stage for accelerating network expansion. With a very strong summer slate, robust sales activity, and our busiest period of the year for installations ahead, we believe we have a substantial opportunity to drive further growth in our business and results for our shareholders this year and beyond."
The company said its promising blockbuster slate includes "Guardians of the Galaxy Vol. 3", "Fast X", "The Flash", "Indiana Jones and the Dial of Destiny", and "Mission Impossible — Dead Reckoning Part One.”