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IMAX Extends Deal With ODEON Cinemas, Expands Across Europe

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IMAX Corporation (IMAX - Free Report) recently announced the expansion of its long-term partnership with AMC Entertainment’s (AMC - Free Report) ODEON Cinemas Group.

Per the agreement, AMC-owned ODEON will upgrade six IMAX theaters with IMAX Laser systems, spanning key European cinema markets.

IMAX and ODEON will also set locations for previously contracted nine new theatres in Europe. The list includes one theater in Germany, Sweden and the U.K., two in Italy and four in Spain. All the new theatres in these locations will be installed by 2025.

The latest agreement will help IMAX build a stronger brand name and support its expansion to Europe, thereby increasing its global consumer base.

IMAX Corporation Price and Consensus

 

IMAX Corporation Price and Consensus

IMAX Corporation price-consensus-chart | IMAX Corporation Quote

 

Increasing Partnerships Aid Global Expansion

IMAX’s top line is expected to benefit from its expanding presence in 2022.

The company has had long-term partnerships with AMC, Cineworld, Regal, CGV and PVR, which continue to help IMAX scale its business and build its momentum for greater returns in the near term.

IMAX has been doing business with AMC, the U.K.-based exhibitor, for 15 years. In 2017, IMAX signed an agreement with ODEON for 25 IMAX theatres. Odeon is IMAX’s largest partner in Europe, with 34 theaters in operation and an additional 11 new locations to be installed by 2025.

IMAX and AEON Entertainment recently expanded their partnership with an agreement for two new IMAX with Laser systems in Japan. Both the systems will be located at prime retail complexes in major Japanese cities.

IMAX also expanded its partnership with Major Cineplex to introduce three new IMAX with Laser systems in Thailand, to be installed at key locations in Central Bangkok. IMAX’s deal with Major Cineplex brings the company’s total presence to seven screens in the Thai market.

IMAX is focused on expanding its international business, which is one of its largest growth drivers. Its plans to enter into strategic collaborations with key streaming companies and its active discussions regarding the same align with its goal. IMAX is also interested in cashing in on this opportunity with its growing footprint of theaters by offering differentiated launches and technology.

As of Mar 31, 2022, there were 1,690 IMAX Theater Systems operating in 87 countries and territories, including 1,606 commercial multiplexes, 12 commercial destinations and 72 institutional locations.

Key Releases To Drive Prospects

A strong slate of releases, which included No Time To Die, The Battle at Lake Changjin, Eternals, Disney (DIS - Free Report) and Sony’s Spider-Man: No Way Home and local language titles, contributed to growth in first-quarter 2022.

IMAX witnessed generous earnings as Disney and Sony’s Spider-Man delivered $36.2 million on approximately 834 IMAX screens across 77 global markets, which included $22 million in North America.

A Filmed for IMAX release, the Disney-Marvel movie Doctor Strange in the Multiverse of Madness witnessed the biggest May opening worldwide, grossing $33 million. The film was ranked as the fifth biggest global IMAX opening ever for a Marvel film.

IMAX earned $32.5 million globally in the first weekend of its release fromParamount Global’s (PARA - Free Report) Top Gun: Maverick. The movie dominated the domestic box office, accumulating 14% of the overall North American gross of $21 million.

Paramount’s Top Gun delivered a top ten all-time IMAX opening weekend in eighteen diverse global markets.

IMAX has a strong lineup of movies slated for release in the rest of 2022, including Black Panther: Wakanda Forever (Nov 22), Avatar: The Way of Water (Dec 22) and The Marvels (July 23), among others, which is likely to drive IMAX’s top-line in the long-haul.

IMAX, which currently has a Zacks Rank #3 (Hold), is down 16.1% year to date against the Zacks Film and Television Production and Distribution industry’s fall of 30.6% and the Consumer Discretionarysector’s decline of 35.8%.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.