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IMAX Partners with Universal Beijing Resort for New Theatre
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Imax Corporation (IMAX - Free Report) recently announced its agreement with Universal Beijing Resort to open China’s first-ever theme park destination IMAX theatre in China. Per the terms of the deal, the company will bring the IMAX with Laser projection system to Universal CITYWALK Cinema, which is set to open in 2021.
The Universal CITYWALK Cinema will be located at the center of Universal CityWalk Beijing, within the Universal Beijing Resort, which is a joint venture between Beijing Shouhuan Cultural Tourism Investment and Comcast (CMCSA - Free Report) dvision Universal Parks & Resorts.
The CityWalk will provide customers with top-class dining and entertainment experiences as well as a variety of themed retail stores and other facilities. Notably, Universal CITYWALK Cinema has been designed to host high-profile movie premiers with IMAX laser-theater, which is expected to act as a platform for the launch of Chinese and American blockbusters in China.
Further, the IMAX laser theater will feature a 4K laser projection system with a new optical engine and a suite of proprietary IMAX technologies. It will also have cutting-edge IMAX precision sound and 12-channel sound technology with new side and overhead channels to provide guests with immersive audio experiences.
The deal with Universal Beijing Resort is a part of IMAX’s efforts to expand its presence in China.
Notably, the company partnered with South Korean cinema chain CGV to add 40 new theaters in Greater China. This deal focuses on Tier 1 and Tier 2 markets in China and is expected to boost demand for IMAX with Laser projections systems.
Moreover, IMAX’s largest, single, international partnership with Wanda Film for 359 theater systems in Greater China highlights its expansion strategy.
The company’s expanding presence in the country is expected to drive the top line in the days ahead. This is because some of IMAX’s biggest offerings like Not Time to Die, Detective Chinatown 3 and Tenet are set to release in China in the second half of the year.
According to a report by China.org, Chinese authorities have stated that after more than three months of closure due to the coronavirus, theaters will be allowed re-open under the condition of implementing coronavirus prevention and control measures. This bodes well for IMAX’s prospects in the near-term.
COVID-19 Remains a Headwind
Nevertheless, the company’s revenues are being dampened by the pandemic-induced closure of theaters in the United States and other countries.
Notably, in first-quarter 2020, IMAX DMR revenues were down 62% year over year to $10.6 million due to 62.9% plunge in IMAX global box office revenues connected to COVID-19 related theater closures. Moreover, theater system installations fell significantly due to the pandemic.
Despite these headwinds, IMAX is well positioned to make a comeback driven by its strong release slate for the second half of the year and the growing traction for IMAX with Laser.
As of Mar 31, 2020, IMAX had signed deals with AMC Entertainment Holdings (AMC - Free Report) , Cineworld Group PLC, and Les Cinemas Pathe Gaumont, among others for a total of 140 new theaters, 157 upgrades to existing IMAX theaters and 52 upgrades to existing arrangements in the company’s backlog.
Long-term earnings growth rate for Activision is currently pegged at 18.8%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
IMAX Partners with Universal Beijing Resort for New Theatre
Imax Corporation (IMAX - Free Report) recently announced its agreement with Universal Beijing Resort to open China’s first-ever theme park destination IMAX theatre in China. Per the terms of the deal, the company will bring the IMAX with Laser projection system to Universal CITYWALK Cinema, which is set to open in 2021.
The Universal CITYWALK Cinema will be located at the center of Universal CityWalk Beijing, within the Universal Beijing Resort, which is a joint venture between Beijing Shouhuan Cultural Tourism Investment and Comcast (CMCSA - Free Report) dvision Universal Parks & Resorts.
The CityWalk will provide customers with top-class dining and entertainment experiences as well as a variety of themed retail stores and other facilities. Notably, Universal CITYWALK Cinema has been designed to host high-profile movie premiers with IMAX laser-theater, which is expected to act as a platform for the launch of Chinese and American blockbusters in China.
Further, the IMAX laser theater will feature a 4K laser projection system with a new optical engine and a suite of proprietary IMAX technologies. It will also have cutting-edge IMAX precision sound and 12-channel sound technology with new side and overhead channels to provide guests with immersive audio experiences.
IMAX Corporation Price and Consensus
IMAX Corporation price-consensus-chart | IMAX Corporation Quote
Expanding Footprint in China Holds Promise
The deal with Universal Beijing Resort is a part of IMAX’s efforts to expand its presence in China.
Notably, the company partnered with South Korean cinema chain CGV to add 40 new theaters in Greater China. This deal focuses on Tier 1 and Tier 2 markets in China and is expected to boost demand for IMAX with Laser projections systems.
Moreover, IMAX’s largest, single, international partnership with Wanda Film for 359 theater systems in Greater China highlights its expansion strategy.
The company’s expanding presence in the country is expected to drive the top line in the days ahead. This is because some of IMAX’s biggest offerings like Not Time to Die, Detective Chinatown 3 and Tenet are set to release in China in the second half of the year.
According to a report by China.org, Chinese authorities have stated that after more than three months of closure due to the coronavirus, theaters will be allowed re-open under the condition of implementing coronavirus prevention and control measures. This bodes well for IMAX’s prospects in the near-term.
COVID-19 Remains a Headwind
Nevertheless, the company’s revenues are being dampened by the pandemic-induced closure of theaters in the United States and other countries.
Notably, in first-quarter 2020, IMAX DMR revenues were down 62% year over year to $10.6 million due to 62.9% plunge in IMAX global box office revenues connected to COVID-19 related theater closures. Moreover, theater system installations fell significantly due to the pandemic.
Despite these headwinds, IMAX is well positioned to make a comeback driven by its strong release slate for the second half of the year and the growing traction for IMAX with Laser.
As of Mar 31, 2020, IMAX had signed deals with AMC Entertainment Holdings (AMC - Free Report) , Cineworld Group PLC, and Les Cinemas Pathe Gaumont, among others for a total of 140 new theaters, 157 upgrades to existing IMAX theaters and 52 upgrades to existing arrangements in the company’s backlog.
Zacks Rank & Stocks to Consider
IMAX currently has a Zacks Rank #3 (Hold).
Activision Blizzard , sporting a Zacks Rank #1 (Strong Buy), is a stock worth considering in the broader consumer discretionary sector. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Activision is currently pegged at 18.8%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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