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IMAX Corporation IMAX reported fourth-quarter 2024 adjusted earnings of 27 cents per share, which missed the Zacks Consensus Estimate by 6.9% but increased 58.8% year over year.
Total revenues of $92.6 million missed the Zacks Consensus Estimate by 11.56% but increased 7.7% year over year.
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Category-wise, image Enhancement & Maintenance Services, technology rentals and finance income were up 20.4%, 6.5% and 34% year over year to $42.7 million, $13.7 million and $2.9, respectively. Technology sales revenues were down 6.2% year over year to $33.1 million.
Segment-wise, Content Solutions revenues increased 33.6% year over year to $25.5 million in the fourth quarter of 2024, driven by higher box office, and highlighted by a record Thanksgiving weekend box office of $24 million.
Technology Products and Services revenues rose 2.5% year over year to $64.04 million, driven by higher box office-related rental revenues that more than offset a lower level of sales type system installations year over year. All Other revenues declined 29.7% year over year to $3.11 million.
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Content Solutions Business Details
Within Content Solutions Business, Film Remastering and Distribution revenues increased 35.4% year over year to $22.8 million. Other content solutions revenues surged 20.2% year over year to $2.68 million.
The fourth-quarter box office of $204 million increased 20% year over year and helped propel IMAX to near-record annual domestic box office. Top-grossing fourth-quarter titles included Gladiator 2 ($31 million), Venom: The Last Dance ($31 million), Mufasa: The Lion King ($26 million) and Interstellar ($20 million).
Technology Products and Services Details
Within the Technology Products and Services segment, System Sales were $31.5 million, down 4.3% year over year. System Rental revenues increased 6.4% year over year to $13.7 million.
Maintenance revenues were $15.7 million, up 9.7% year over year. Finance Income revenues were $2.97 million in the reported quarter, up 34% year over year.
Network Growth Statistics
During the fourth quarter of 2024, IMAX installed 58 systems compared with 69 systems in the fourth quarter of 2023, resulting in 146 system installations in the full year versus 128 system installations in the prior year. Of those, 28 systems in the fourth quarter and 63 in the full year were under sales arrangements compared with 35 and 70 systems in the prior year, respectively.
As of Dec. 31, 2024, there were 1,807 IMAX Systems operating in 90 countries and territories, including 1,735 commercial multiplexes, 11 commercial destinations and 61 institutional locations in the company’s global network.
IMAX currently estimates a worldwide commercial multiplex addressable market of 3,619 locations, of which there are 1,735 IMAX Systems operating as of Dec. 31, 2024, representing a market penetration of only 48%.
As of Dec. 31, 2024, IMAX had 809 IMAX Systems operating in Greater China with an additional 237 systems in backlog. The company’s backlog in Greater China as of Dec. 31, 2024, represents 54% of its total backlog, including system upgrades. IMAX has a partnership in China with Wanda and as of Dec. 31, 2024, through the company’s partnership with Wanda, there were 384 IMAX Systems operational in Greater China, of which 334 are under the parties’ joint revenue-sharing arrangements.
Commercial network growth continues with the number of IMAX locations increasing 2.5% year over year to 1,735 systems. The company ended 2024 with a backlog of 440 IMAX systems.