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IMAX Partners With Galaxy Cinema for Two Locations in Vietnam

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IMAX (IMAX - Free Report) announced that it signed an agreement with Galaxy Cinema for two state-of-the-art IMAX in Vietnam. This partnership will bring the Imax Laser Technology for the first time in the market.

Galaxy Cinema, Vietnam’s largest local cinema chain, is set to construct the two new cinemas, including one in Ho Chi Minh City, in 2023. This partnership was announced at the annual CinemaCon 2023 conference in Las Vegas.

The partnership with IMAX will increase IMAX’s presence from four to six systems in Vietnam. This agreement marks the first construction for IMAX in Southeast Asia to fulfil the growing demand for movie experiences since 2019.

IMAX with Laser Technology will mark its debut in Vietnam with this agreement. This is IMAX’s most advanced theater experience. IMAX with Laser provides ground-breaking 4k projection, deeper contrast, improved resolution and widest range of colors.

IMAX Corporation Price and Consensus

 

IMAX Corporation Price and Consensus

IMAX Corporation price-consensus-chart | IMAX Corporation Quote

Imax to Further Expand Its Footprint as Entertainment Industry Recovers

This Zacks Rank #3 (Hold) company is looking to capitalize on a recovering market. IMAX recently expanded its partnership with Major Cineplex to add 10 state-of-the-art facilities across Thailand. This partnership also includes four upgrades to key locations in Thailand by 2025.

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

Given the strong recovery of IMAX, shares of the company have gained 26.3% in the past year against the Zacks Consumer Discretionary sector’s decline of 9.4%.

According to an Insurance Journal report, the entertainment industry is recovering. Global box office receipts collected $25.9 billion in 2022, indicating a rise of 27% from 2021 but a decline of 35% from the average of three years before the pandemic.

With macroeconomic factors cooling down the entertainment industry, IMAX is facing a stiff competition withcompanies like Warner Music Group (WMG - Free Report) , Dolby Laboratories (DLB - Free Report) and Lions Gate Entertainment (LGF.A - Free Report) .

Warner Music Group is a global music company and a record label conglomerate. It is one of the big three recording companies in the world. The company’s revenues get major contribution from movies.

Dolby Laboratories specializes in the science of sight and sound through innovation. The company is considered the best audio experience provider. It has its own cinemas and it provides audio technology to other cinemas.

Lions Gate is a provider of entertainment services. It has been focusing on OTT content lately, but its motion picture revenues are major contributors to revenues.

Blockbusters, set to release in 2023, are Fast X, Dune Part 2 and Guardians of the Galaxy Vol.3. These movies are expected to boost revenues for the whole entertainment industry.

The Zacks Consensus Estimate for IMAX’s 2023 profit is pegged at 73 cents per share, indicating year-over-year growth of 1,116.67%. The consensus estimate for first-quarter 2023 revenues is pegged at $78.02 million, indicating a year-over-year increase of 29.94%.

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