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IMAX (IMAX) Partners With Aeon to Expand Its Footprint in Japan
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Imax (IMAX - Free Report) announced that it collaborated with Aeon Entertainment again to open seven more cinema halls in Japan by summer 2023.
The initiative comes on the heels of Japan emerging as the third-highest-grossing global market in 2022 with more than $73 million at the box office. Avatar: The Way of Water, which was released only on a fraction of the total screens, marks 20% of the total Japan box office, whereas Top Gun: Maverick generated $18 million.
Imax also witnessed a good response to Indian movies, as RRR generated $5 million within a week of release. Along with this, local films such as Suzume, Your Name, Weathering With You, and 5 Centimeters Per Second have contributed $40.2 million to Imax’s total box office sales in Japan.
It is expected that these upcoming theaters would attract more viewers and aid Imax’s top line, as these theaters are to be equipped with advanced laser technology that will deliver bright life-like images and crystal-clear audio that enhances the movie experience.
Imax Makes Massive Expansion in Asia and the Middle East
The lifting of covid restrictions, which is allowing people to move outdoors, could increase footfall at cinema theaters. Per Variety, the world's cinema exhibition market is expected to grow 12% in 2023 to reach $29 billion.
To take advantage of the opportunity, Imax has been investing heavily in expanding its presence in major markets, especially that of Asia and the Middle East.
Last year, Imax entered an agreement with China’s Wanda Films to install six multiplexes across the country, and relocate and upgrade three existing cinema halls. With the zero-covid policy finally being removed, China could aid Imax’s top line as it is its second-highest revenue-generating market.
Additionally, Imax also extended its partnership with AMC Cinemas to open six new multiplexes in the region, which currently just has three. The deal also promises to grow their partnership to a planned 18 screens in 12 cities across the country.
It also announced its plans to add six more screens in India during 2023 after seeing 41% growth in the Indian markets. Imax aims to touch the 100-screen mark in the next five years in the country, which currently stands at 41.
Despite these expansions, Imax has to face heavy headwinds from the streaming industry, which may hinder its growth and not give successful returns on such heavy investments that the company is making under multiple deals. Per Business Research Company, the global content streaming market size is expected to grow from $121.75 billion in 2022 to $138.60 billion in 2023.
Shares of Imax have declined 10.3% in the past year compared with the Zacks Consumer Discretionary space's dip of 25.1%.
Some other top-ranked stocks in the same sector are Deckers Outdoor (DECK - Free Report) , Liberty Global (LBTYA - Free Report) and Nexstar Media Group (NXST - Free Report) , each sporting a Zacks Rank #1 at present.
Shares of Deckers Outdoor have gained 32.4% in the past year. The Zacks Consensus Estimate for earnings is pegged at $9.41 per share, which has declined 0.6% over the past 30 days.
Shares of Nexstar Media Group have gained 12.4% in the past year. The Zacks Consensus Estimate for earnings is pegged at $7.57 per share, which has been unchanged over the past 30 days.
Shares of Liberty Global have declined 24.4% in the past year. Its earnings are estimated to be 49 cents per share.
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IMAX (IMAX) Partners With Aeon to Expand Its Footprint in Japan
Imax (IMAX - Free Report) announced that it collaborated with Aeon Entertainment again to open seven more cinema halls in Japan by summer 2023.
The initiative comes on the heels of Japan emerging as the third-highest-grossing global market in 2022 with more than $73 million at the box office. Avatar: The Way of Water, which was released only on a fraction of the total screens, marks 20% of the total Japan box office, whereas Top Gun: Maverick generated $18 million.
Imax also witnessed a good response to Indian movies, as RRR generated $5 million within a week of release. Along with this, local films such as Suzume, Your Name, Weathering With You, and 5 Centimeters Per Second have contributed $40.2 million to Imax’s total box office sales in Japan.
It is expected that these upcoming theaters would attract more viewers and aid Imax’s top line, as these theaters are to be equipped with advanced laser technology that will deliver bright life-like images and crystal-clear audio that enhances the movie experience.
Imax Makes Massive Expansion in Asia and the Middle East
The lifting of covid restrictions, which is allowing people to move outdoors, could increase footfall at cinema theaters. Per Variety, the world's cinema exhibition market is expected to grow 12% in 2023 to reach $29 billion.
To take advantage of the opportunity, Imax has been investing heavily in expanding its presence in major markets, especially that of Asia and the Middle East.
Last year, Imax entered an agreement with China’s Wanda Films to install six multiplexes across the country, and relocate and upgrade three existing cinema halls. With the zero-covid policy finally being removed, China could aid Imax’s top line as it is its second-highest revenue-generating market.
IMAX Corporation Price and Consensus
IMAX Corporation price-consensus-chart | IMAX Corporation Quote
Additionally, Imax also extended its partnership with AMC Cinemas to open six new multiplexes in the region, which currently just has three. The deal also promises to grow their partnership to a planned 18 screens in 12 cities across the country.
It also announced its plans to add six more screens in India during 2023 after seeing 41% growth in the Indian markets. Imax aims to touch the 100-screen mark in the next five years in the country, which currently stands at 41.
Despite these expansions, Imax has to face heavy headwinds from the streaming industry, which may hinder its growth and not give successful returns on such heavy investments that the company is making under multiple deals. Per Business Research Company, the global content streaming market size is expected to grow from $121.75 billion in 2022 to $138.60 billion in 2023.
Shares of Imax have declined 10.3% in the past year compared with the Zacks Consumer Discretionary space's dip of 25.1%.
Zack Rank & Other Stocks to Consider
Imax currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks in the same sector are Deckers Outdoor (DECK - Free Report) , Liberty Global (LBTYA - Free Report) and Nexstar Media Group (NXST - Free Report) , each sporting a Zacks Rank #1 at present.
Shares of Deckers Outdoor have gained 32.4% in the past year. The Zacks Consensus Estimate for earnings is pegged at $9.41 per share, which has declined 0.6% over the past 30 days.
Shares of Nexstar Media Group have gained 12.4% in the past year. The Zacks Consensus Estimate for earnings is pegged at $7.57 per share, which has been unchanged over the past 30 days.
Shares of Liberty Global have declined 24.4% in the past year. Its earnings are estimated to be 49 cents per share.