We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
IMAX Expands Presence in China with Multiple Partnerships
Read MoreHide Full Article
IMAX (IMAX - Free Report) recently extended its partnership with Wanying Cinema Line to open 14 more IMAX theaters bringing the total to 15. The theaters will feature the company’s latest laser technology.
Notably, both the parties signed a prior agreement to open an IMAX theater, which opened in March this year.
Wanying Cinema Line, a subsidiary of China Resources Land, one of the biggest state-owned commercial developers, will install IMAX theaters in MIXCINE multiplexes, its new luxury shopping sites, most of which are placed in tier one and tier two cities.
Two theaters will open on Sep 15 in Taiyuan and Chongqing. The others are expected to be operational by 2021.
China Expansion: A Key Catalyst
IMAX continues to expand its presence in China by opening more theaters as well as being part of the local title releases. Notably, the company currently has a total of 900 contracted theaters in Greater China.
Greater China is IMAX’s second-largest market, with approximately 24% of overall revenues as of second-quarter 2018.
The company’s efforts to further expand its presence in China are likely to lead to increased revenue contribution from the region and thereby top-line growth.
Major Hollywood title releases in China also contribute significantly to IMAX’s revenues. Marvel Studios' Avengers: Infinity War, the first movie to be completely filmed with IMAX cameras generated $145 million, as of the last reported quarter, including $43 million from China alone. It is company’s biggest grossing title ever.
IMAX is improving its relationship with ticketing platforms in China to improve its presence in the market, which will eventually drive audience.
Theater owners like IMAX are facing significant competition from streaming service providers like Netflix (NFLX - Free Report) , Amazon (AMZN - Free Report) , and Hulu. These services have been successful in attracting the audience with award-winning content. As a result, footfall has declined in theaters, hurting top-line growth.
Moreover, Amazon’s plan to acquire Landmark Theatres, which has more than 50 theaters in the United States, is likely to disrupt IMAX’s dominant position in the market.
Nevertheless, IMAX is expected to benefit from film studios’ increasing emphasis on releasing franchise content and consumers’ growing desire to experience this content in differentiated ways. Growing number of blockbuster movies like Avengers: Infinity War and Incredibles 2 is a key catalyst for IMAX.
Long-term earnings growth for Sony is currently pegged at 7.1%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
IMAX Expands Presence in China with Multiple Partnerships
IMAX (IMAX - Free Report) recently extended its partnership with Wanying Cinema Line to open 14 more IMAX theaters bringing the total to 15. The theaters will feature the company’s latest laser technology.
Notably, both the parties signed a prior agreement to open an IMAX theater, which opened in March this year.
Wanying Cinema Line, a subsidiary of China Resources Land, one of the biggest state-owned commercial developers, will install IMAX theaters in MIXCINE multiplexes, its new luxury shopping sites, most of which are placed in tier one and tier two cities.
Two theaters will open on Sep 15 in Taiyuan and Chongqing. The others are expected to be operational by 2021.
China Expansion: A Key Catalyst
IMAX continues to expand its presence in China by opening more theaters as well as being part of the local title releases. Notably, the company currently has a total of 900 contracted theaters in Greater China.
Greater China is IMAX’s second-largest market, with approximately 24% of overall revenues as of second-quarter 2018.
The company’s efforts to further expand its presence in China are likely to lead to increased revenue contribution from the region and thereby top-line growth.
Major Hollywood title releases in China also contribute significantly to IMAX’s revenues. Marvel Studios' Avengers: Infinity War, the first movie to be completely filmed with IMAX cameras generated $145 million, as of the last reported quarter, including $43 million from China alone. It is company’s biggest grossing title ever.
IMAX is improving its relationship with ticketing platforms in China to improve its presence in the market, which will eventually drive audience.
IMAX Corporation Revenue (TTM)
IMAX Corporation Revenue (TTM) | IMAX Corporation Quote
Intensifying Competition to Hurt
Theater owners like IMAX are facing significant competition from streaming service providers like Netflix (NFLX - Free Report) , Amazon (AMZN - Free Report) , and Hulu. These services have been successful in attracting the audience with award-winning content. As a result, footfall has declined in theaters, hurting top-line growth.
Moreover, Amazon’s plan to acquire Landmark Theatres, which has more than 50 theaters in the United States, is likely to disrupt IMAX’s dominant position in the market.
Nevertheless, IMAX is expected to benefit from film studios’ increasing emphasis on releasing franchise content and consumers’ growing desire to experience this content in differentiated ways. Growing number of blockbuster movies like Avengers: Infinity War and Incredibles 2 is a key catalyst for IMAX.
Zacks Rank & Other Stock to Consider
Currently, IMAX carries a Zacks Rank #3 (Hold).
A better-ranked stock that can be considered in the broader consumer discretionary sector is Sony Corp. sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Sony is currently pegged at 7.1%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>