IMAX China Holding, Inc. (“IMAX China” or the “Company”, HKSE: 1970) today reported half-year 2020 Greater China revenue of US$6.7 million, gross and adjusted loss of US$4.0 million and US$15.5 million, respectively.
- 401 out of IMAX China’s approximately 700 theatre network in Chinese mainland have resumed operations under the China Film Administration’s guidelines. Including the Hong Kong and Taiwan network, 411 IMAX Greater China theatres are open as of the reporting date.
- IMAX China signed 22 deals in the first half of 2020, led by a 20-theatre agreement with longtime partner and industry leader Wanda Film, and a new agreement at the highly anticipated Universal Beijing CityWalk.
- Backlog reached 271 systems as of June 30, 2020.
- Revenue of US$6.7 million, down 89% year-over-year, with an adjusted net loss of US$15.5 million due to the adverse impact of COVID-19 and the temporary closure of most of the theatre network.
- The Company maintains a strong balance sheet with US$73.8 million in net cash as of June 30, 2020.
- Approval of a stable interim dividend of approximately US$7 million (US$0.02 per share) for the first half of 2020.
Loss of box office and other revenue due to the closure of approximately 700 IMAX theatres in Chinese mainland from January 24, 2020, through to the end of the reporting period, and a decrease in theatre system installations during the COVID-19 outbreak drove results down in the first-half of 2020. Many theaters in Chinese mainland were given permission to start reopening on July 20, 2020 under China Film Administration’s guidelines which include certain safety protocols.
“We are happy to see theaters reopen and look forward to welcoming back IMAX fans to enjoy their favorite films in an unparalleled experience.” said Richard L. Gelfond, Chairman of IMAX China. “IMAX China’s financial strength built upon a unique asset-light business model, strong cash position and disciplined cost management over the years has helped us navigate through the unprecedented temporary shutdown of our theatre network. Given our proven product offering, we are confident that consumers cannot wait to return to trusted brands like IMAX for its differentiated entertainment experience and for what shapes to be a formidable content pipeline through 2021,” said Mr. Gelfond.