Theatrical exhibitor Imax Oct. 31 reported a third quarter (ended Sept. 30) net loss of $9 million, widened almost 7% from a net loss of $8.4 million in the previous-year period. Imax saw revenue increase 21% to $68.8 million from $56.6 million in the prior-year quarter.
Through the first nine months of the fiscal year, Imax has narrowed its net loss 22% to $25.4 million from $32.4 million last year. Revenue has increased 39% to $202.8 million from $146.3 million.
CEO Richard Gelfond attributed the revenue increase to the company’s diversified revenue model, including local-language movies, and acquisition of streaming technology company SSIMWAVE, enhancing its ability its branded screen images in the home.
“[We] demonstrated the strength of [our] differentiated model in the quarter to grow revenue, box office, and [pre-tax earnings] despite a temporary slowdown in the Hollywood pipeline,” Gelfond said in a statement.
The executive is eying “significant potential tailwinds” this quarter with the release of Black Panther: Wakanda Forever and Avatar: The Way of Water, the latter the long-awaited sequel to the highest grossing Imax film ($270 million) of all time.
“In the short-term, SSIMWAVE is expected to generate incremental revenue and be accretive in 2023, and in the long-term open a new world of possibility for our image enhancement capabilities — across not only streaming and theatrical, but gaming, virtual reality (VR) and augmented reality (AR),” Gelfond said.