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IMAX Corp Inks New Theater Deals with AMC and Cineworld
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IMAX Corporation (IMAX - Free Report) recently inked two new theatre deals with AMC Theatres, subsidiary of AMC Entertainment Holdings Inc. (AMC - Free Report) and Cineworld Group Plc. The latest agreements will not only help IMAX build a stronger brand name in the U.S. but will also support its expansion to Europe, thereby increasing its global consumer base. IMAX is well-known for offering a premium movie experience to its customers.
AMC Deal in the U.S.
According to the new full joint revenue sharing agreement (an expansion of their existing agreement) between the companies 25 IMAX theatres will installed across North America in new and existing AMC locations, thereby taking the total number of AMC-IMAX theatres to 185. The new theatres would be launched between 2016 and 2019. The new deal focuses on the high growth opportunities in this region. While cities such as New York, Los Angeles and Houston have always been considered as high growth areas, small-tier cities too have jumped on the bandwagon.
AMC has received a positive response from its existing IMAX theatres. The company saw 87% increase in box office earnings in the first quarter of 2016 with releases such as Star Wars: The Force Awakens, Deadpool, and Batman v. Superman: Dawn of Justice. The company plans to continue expanding with IMAX and remains its largest partner in the the U.S. with the aim of maintaining a strong top-line growth.
Cineworld Group Deal in Europe
IMAX signed a five-theatre deal with Cineworld Group in Europe. Being the second-largest cinema operator in the region, Cineworld currently operates in nine European countries. The current deal takes the number of theatres launched together by the two companies to 40. The five new theatres will be installed in new multiplexes across Europe. IMAX will also be part of the Cineworld’s new flagship complex in the U.K.’s Plymouth area.
Cineworld’s decision to expand its IMAX offering is due to the growing popularity of “The IMAX Experience” across Europe in both developed and emerging markets. Since 2012 the number of IMAX Cineworld theatres has increased threefold.
Zacks Rank and Key Stock Picks
IMAX currently holds a Zacks Rank #4 (Sell). Investors interested in the broader consumer entertainment segment could also consider stocks such as MSG Networks and Dish Networks Corp. . Both stocks hold a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
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IMAX Corp Inks New Theater Deals with AMC and Cineworld
IMAX Corporation (IMAX - Free Report) recently inked two new theatre deals with AMC Theatres, subsidiary of AMC Entertainment Holdings Inc. (AMC - Free Report) and Cineworld Group Plc. The latest agreements will not only help IMAX build a stronger brand name in the U.S. but will also support its expansion to Europe, thereby increasing its global consumer base. IMAX is well-known for offering a premium movie experience to its customers.
AMC Deal in the U.S.
According to the new full joint revenue sharing agreement (an expansion of their existing agreement) between the companies 25 IMAX theatres will installed across North America in new and existing AMC locations, thereby taking the total number of AMC-IMAX theatres to 185. The new theatres would be launched between 2016 and 2019. The new deal focuses on the high growth opportunities in this region. While cities such as New York, Los Angeles and Houston have always been considered as high growth areas, small-tier cities too have jumped on the bandwagon.
AMC has received a positive response from its existing IMAX theatres. The company saw 87% increase in box office earnings in the first quarter of 2016 with releases such as Star Wars: The Force Awakens, Deadpool, and Batman v. Superman: Dawn of Justice. The company plans to continue expanding with IMAX and remains its largest partner in the the U.S. with the aim of maintaining a strong top-line growth.
Cineworld Group Deal in Europe
IMAX signed a five-theatre deal with Cineworld Group in Europe. Being the second-largest cinema operator in the region, Cineworld currently operates in nine European countries. The current deal takes the number of theatres launched together by the two companies to 40. The five new theatres will be installed in new multiplexes across Europe. IMAX will also be part of the Cineworld’s new flagship complex in the U.K.’s Plymouth area.
Cineworld’s decision to expand its IMAX offering is due to the growing popularity of “The IMAX Experience” across Europe in both developed and emerging markets. Since 2012 the number of IMAX Cineworld theatres has increased threefold.
Zacks Rank and Key Stock Picks
IMAX currently holds a Zacks Rank #4 (Sell). Investors interested in the broader consumer entertainment segment could also consider stocks such as MSG Networks and Dish Networks Corp. . Both stocks hold a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>