netrashetty
Netra Shetty
IMAX Corporation (TSX:IMX NASDAQ:IMAX) is a Canadian entertainment technology company with an industry leading growth rate. IMAX's principal business is the design, manufacture, sale and lease of theater systems based on its technology for large-format, 15-perforation film frame, 70 millimeter format (15/70-format) theaters. IMAX competes with other movie theaters, such as Regal Entertainment and Cinemark Holdings.
IMAX had a 53.3% increase in revenue from 2007 to 2009[1] due to the growth of film technology and increased demand for 3-D films. The blockbuster film Avatar was IMAX's breakthrough film of the decade, as it generated $2.7 billion in box office revenues and created more demand for 3-D films. IMAX is also dependent on the quality and popularity of films that it shows, as 3-D box office sales are correlated to 2-D box office sales.[2] With its domestic success, IMAX has made moves to expand internationally. IMAX has made deals with two Russian entertainment firms to open theaters in Moscow, St. Petersburg and Krasnodar.
Business Overview
Business Financials
IMAX has profited immensely from the 3-D entertainment boom, starting in 2009. Before 2009, IMAX had net losses due to making multi-million dollar investments in technology and some failed projects.
FY 2009 Performance (ended December 31,2009)
Contents
1 Business Overview
1.1 Business Financials
1.1.1 FY 2009 Performance (ended December 31,2009)
1.1.2 Q1 FY 2010 (Ended March 31, 2010)
1.1.3 Q2 FY 2010 (Ended June 30, 2010)
1.1.4 Q3 FY 2010 (Ended September 30th, 2010)
1.2 Business Segments
1.2.1 IMAX Systems (32.7% of Revenue)
1.2.2 Films (32.4% of Revenue)
1.2.3 Theater System Maintenance (15.4% of Revenue)
1.2.4 Joint Revenue Sharing Arrangements (3.2% of Revenue)
1.2.5 Theater Operations (13.2% of Revenue)
1.2.6 Other (3.1% of Revenue)
2 Trends and Forces
2.1 IMAX Grows at Same Pace as Technology and Demand for 3-D Films
2.2 IMAX Revenue Dependent on Box Office Success of Films
2.3 IMAX Theaters Expanding Internationally
3 Competition
3.1 Movie Theaters
3.2 Film Makers
4 References
IMAX had a strong fiscal year 2009 due to the blockbuster movie, Avatar. In the fourth quarter, IMAX had revenues of $54.2 million -- a 98% increase from Q4 2008.[3] Also during 2009, IMAX expanded its number of theaters by 38%.[3] IMAX foresees similarly strong performance in 2010, due to the release of other anticipated IMAX films such as Iron Man 2, Alice in Wonderland, and Toy Story 3.[3] From 01/01/2010 to 03/11/2010, IMAX has had box office sales of $187 million compared to $14 million during the same period in 2009.[3]
Q1 FY 2010 (Ended March 31, 2010)
IMAX recorded record revenues of $72.8 million -- a 120% increase from Q1 FY 2009 revenues of $33.1 million.[4]
IMAX recorded net income of $26.6 million for the quarter, compared to a net loss of $2.6 million in Q1 FY 2009 (due to funding Avatar).
IMAX signed deals with 41 theaters in Q1, which was more than the firm's 2009 total.[4]
IMAX further reported that Q2 FY 2010 quarter-to-date box office sales are 78% higher than sales during the same period in FY 2009.[4].
Q2 FY 2010 (Ended June 30, 2010)
IMAX posted revenue of $55.6 million -- a 38% increase from Q2 fiscal 2009.[5] YTD, the firm has posted revenue of $128.4 million -- a 75% increase compared to the first half of 2009.[5]
IMAX has had 118 theater system signings YTD, compared to 35 in the first half of 2009.[5]
IMAX posted net income of $13.3 million for the quarter, compared to $2.6 million in Q2 fiscal 2009.[5]
The IMAX Theater Systems segment revenue doubled in the quarter, from $8.3 million in Q2 fiscal 2009 to $17.3 million.[5]
For the quarter, IMAX box office revenues increased 28% to $20.7 million on the success of Iron Man 2 and Toy Story 3, amongst others.[5]
Q3 FY 2010 (Ended September 30th, 2010)
IMAX reported revenues of $51.1 million, a 17.5% increase compared to Q3 fiscal 2009.[6]
The increased revenues boosted gross margin in turn, from $18.8 million in Q3 fiscal 2009 to $25.9 million.[6]
The firm reported net income of $6.7 million, compared to net income of $1.1 million in Q3 fiscal 2009.[6]
In addition, IMAX completed new 100 theater system signings in the quarter.[6]
IMAX also announced nine films for 2011, including "Harry Potter and the Deathly Hallows: Part II: An IMAX 3D Experience" and "Pirates of the Caribbean: On Stranger Tides: An IMAX 3D Experience."[6]
Financial Metrics 2006 2007 2008 2009
Revenue ($M) $127.71 $115.83 $106.23 $171.21
Gross Margin 41.2% 35.5% 35.3% 47.6%
Operating Margin 5.0% 5.7% 5.2% 11.6%
Net Earnings ($M) ($16.85) ($26.94) ($33.60) $5.02
Business Segments
IMAX Systems (32.7% of Revenue)
IMAX Corporation's biggest revenue source is its large-format theater systems. IMAX theater systems traditionally include a rolling loop 15/70-format projector; a six-channel, digital sound system delivering up to 12,000 watts; a screen with IMAX coating technology, and, if applicable, 3D glasses cleaning equipment. As part of the arrangement to sell or lease its theater systems, IMAX provides advice on theater planning and design, and supervision of installation services. Theater systems are also leased or sold with a license for the use of the IMAX brand. IMAX primarily offers its theater systems in four configurations: the GT projection system for the largest IMAX theaters; the SR system for smaller theaters; the IMAX MPX system, which is targeted for multiplex complexes, and a fourth category of theater systems featuring heavily curved and tilted screens that are used in dome-shaped theaters. From FY 2008 to FY 2009, IMAX Systems revenue increased 85%, due to the increased demand for 3-D film experiences.[7]
Films (32.4% of Revenue)
Films produced by IMAX Corporation are typically financed through third parties, whereby it will generally receive a film production fee in exchange for producing the film and will be a distributor of the film. The ownership rights to such films may be held by the film sponsors, the film investors and/or IMAX Corporation. It has developed technology that makes it possible for 35millimeter live-action film to be digitally transformed into IMAX's 15/70-format. This system, known as IMAX DMR, has opened the IMAX theater network up to film releases from Hollywood's broad library of films. For IMAX DMR releases, the original soundtrack of the 35 millimeter film is also re-mastered for IMAX's five or six-channel digital sound system components. From FY 2008 to FY 2009, Films revenue increased 50%.[7]
Theater System Maintenance (15.4% of Revenue)
The Theater System Maintenance segment IMAX theater projection system equipment in the IMAX theater network. Maintenance revenue continues to grow as the number of theaters in the IMAX network grows. Maintenance margins vary depending on the mix of theater system configurations in the theater network and the date of installation. From FY 2008 to FY 2009, Theater System Maintenance revenue increased 11.9%.[7]
Joint Revenue Sharing Arrangements (3.2% of Revenue)
The Joint Revenue Sharing Arrangements segment consist of all business partnerships IMAX is involved in. IMAX ended 2009 with 117 theaters operating under joint revenue sharing arrangements as compared to 52 theaters at the end of 2008. In 2008, 40 of the 52 theaters were installed in the third and fourth quarters, resulting in less than a full year of revenues being recorded. From FY 2008 to FY 2009, Joint Revenue sharing Arrangements revenue increased six-fold, from $3.4 million to $21.6 million.[7]
Theater Operations (13.2% of Revenue)
The Theater Operations segment consists of IMAX's owned and operated theaters business, resulting from box-office ticket and concession sales as tickets are sold, films are shown and upon the sale of various concessions. In addition, IMAX arranges business with third party theater owners resulting in the sharing of profits and losses which are recognized in Services revenue when reported by such theaters. IMAX also provides management services to certain theaters and recognizes revenue over the term of such services. From FY 2008 to FY 2009, Theater Operations revenue increased 12.4%.[7]
Other (3.1% of Revenue)
The Company rents 2D and 3D 15/70-format analog cameras and provides technical and post-production services to third-party producers for a fee. It has developed dual and single filmstrip 3D cameras. The IMAX 3D camera simultaneously shoots left-eye and right-eye images and its compact size allows filmmakers access to a variety of locations, such as underwater or aboard aircraft. The Company maintains cameras and other film equipment to support third-party producers and also offers production advice and technical assistance to filmmakers. From FY 2008 to FY 2009, Other revenue increased 7.2%.[7]
As of March 2009, a majority of IMAX theaters are in the U.S., but the firm also has an international presence.[7]
Trends and Forces
IMAX Grows at Same Pace as Technology and Demand for 3-D Films
Since superior entertainment technology differentiates IMAX from its competitors, the firm's success and growth is dependent on new technology. IMAX developed the MKII and IMAX 3D cameras to be able to film its signature shots, and the firm also developed technology to convert 2-D films to 3-D films.[8] As new entertainment technology emerges, and the demand for 3-D films continues to increase, IMAX hopes to continue profiting at a record pace.
The demand for 3-D films has grown exponentially in the past two years. The contribution of 3-D box office sales to total box office sales increased from 2% in 2008 to 11% in 2009.[9] Since 3-D films charge $3 per ticket more than 2-D films, having a 3-D version of a film can improve box office revenues by about 25%.[10] Evolving technology also means that IMAX competitors may be able to provide the same viewing experiences, however. For example, the launch of 3-D televisions will allow consumers to view 3-D films in the comfort of their own homes, and not in IMAX theaters.[11] IMAX plans to contribute to 3-D television popularity by writing television licenses to future 3-D films and advertisements in its theaters.[12]
IMAX Revenue Dependent on Box Office Success of Films
Like other movie theaters, such as Regal Entertainment , Cinemark, and privately-held AMC Entertainment, IMAX revenue is dependent on the popularity of the films it shows. Clearly if less blockbuster-popular movies are made, then less moviegoers will go to IMAX theaters and buy tickets. Furthermore, IMAX is reliant on films that fit to be made in 3-D, such as action-packed films and animated films. For example, the blockbuster comedy "The Hangover" was the 10th highest-grossing film in 2009,[13] but it is not practical for Imax to show it in 3-D. In the past four years, however, there has been an increasing demand for technologically advanced films. For example, the IMAX film "Avatar" grossed over $2.7 billion from 12/18/2009 to 04/27/2010.[13] IMAX stock has almost doubled (184%) in that time period.
With the success of Avatar, IMAX has made efforts to expand its film repertoire. On April 28th, IMAX signed a deal with filmmaker Warner Bros. through 2013.[2] The deal will allow Imax to digitize up to 20 Warner Bros. films in 3-D to show at Imax theaters, including the highly anticipated "Harry Potter and the Deathly Hallows."[2] Other anticipated IMAX films include "Iron Man 2," "Toy Story 3," and "Shrek: Forever After."
IMAX Theaters Expanding Internationally
With the success of IMAX theaters in the United States, the firm has made moves to have a greater international presence. The 2010 IMAX film Prince of Persia: The Sands of Time will be opened in 53 international theaters, spanning all continents (excluding Antarctica).[14] IMAX has been particularly aggressive in Russia, where it has worked with Russian media firm Rising Star Media to open two new theaters in Moscow and St. Petersburg in 2010.[15] IMAX has also worked with Russian retail and entertainment developer SBS to open a theater in Krasnodar, which has a population of 750,000.[16] Existing Russian IMAX theaters generated $9.4 million in box office revenues during the first three months of 2010.[16]
Competition
Movie Theaters
Regal Entertainment Group (RGC) RGC operates hundreds of movie theaters throughout the United States, showing 2-D versions of IMAX films.
Cinemark Holdings (CNK) Similarly to RGC, Cinemark directly competes with RGC for filmgoers ticket sales as well as IMAX for viewings of 2-D films also in 3-D.
Competition Imax (IMAX)[1] Regal Entertainment Group (RGC)[17] Cinemark Holdings (CNK)[18]
Revenue $Mil 169.35 2,893.00 1,976.50
Net Income $Mil 5.02 95.50 97.11
Operating Margin % 11.22% 9.4% 11.26%
Net Profit Margin % 2.90% 3.30% 4.90%
Film Makers
Walt Disney Company (DIS) -- Walt Disney Company writes and produces films that compete with IMAX produced films.
Dreamworks Animation SKG (DWA) -- Dreamworks also writes and produces films that compete with IMAX produced films, especially animated films such as Madagascar and Shrek.
Competition Imax (IMAX)[1] Walt Disney Company (DIS)[19] Dreamworks Animation SKG (DWA)[20]
Revenue $Mil 169.35 36,149.00 725.18
Net Income $Mil 5.02 3,307.00 151.03
Operating Margin % 2.90% 15.65% 20.9%
Net Profit Margin % 11.22% 9.15% 20.8%
IMAX Corporation (TSX:IMX NASDAQ:IMAX) is a Canadian entertainment technology company with an industry leading growth rate. IMAX's principal business is the design, manufacture, sale and lease of theater systems based on its technology for large-format, 15-perforation film frame, 70 millimeter format (15/70-format) theaters. IMAX competes with other movie theaters, such as Regal Entertainment and Cinemark Holdings.
IMAX had a 53.3% increase in revenue from 2007 to 2009[1] due to the growth of film technology and increased demand for 3-D films. The blockbuster film Avatar was IMAX's breakthrough film of the decade, as it generated $2.7 billion in box office revenues and created more demand for 3-D films. IMAX is also dependent on the quality and popularity of films that it shows, as 3-D box office sales are correlated to 2-D box office sales.[2] With its domestic success, IMAX has made moves to expand internationally. IMAX has made deals with two Russian entertainment firms to open theaters in Moscow, St. Petersburg and Krasnodar.
Business Overview
Business Financials
IMAX has profited immensely from the 3-D entertainment boom, starting in 2009. Before 2009, IMAX had net losses due to making multi-million dollar investments in technology and some failed projects.
FY 2009 Performance (ended December 31,2009)
Contents
1 Business Overview
1.1 Business Financials
1.1.1 FY 2009 Performance (ended December 31,2009)
1.1.2 Q1 FY 2010 (Ended March 31, 2010)
1.1.3 Q2 FY 2010 (Ended June 30, 2010)
1.1.4 Q3 FY 2010 (Ended September 30th, 2010)
1.2 Business Segments
1.2.1 IMAX Systems (32.7% of Revenue)
1.2.2 Films (32.4% of Revenue)
1.2.3 Theater System Maintenance (15.4% of Revenue)
1.2.4 Joint Revenue Sharing Arrangements (3.2% of Revenue)
1.2.5 Theater Operations (13.2% of Revenue)
1.2.6 Other (3.1% of Revenue)
2 Trends and Forces
2.1 IMAX Grows at Same Pace as Technology and Demand for 3-D Films
2.2 IMAX Revenue Dependent on Box Office Success of Films
2.3 IMAX Theaters Expanding Internationally
3 Competition
3.1 Movie Theaters
3.2 Film Makers
4 References
IMAX had a strong fiscal year 2009 due to the blockbuster movie, Avatar. In the fourth quarter, IMAX had revenues of $54.2 million -- a 98% increase from Q4 2008.[3] Also during 2009, IMAX expanded its number of theaters by 38%.[3] IMAX foresees similarly strong performance in 2010, due to the release of other anticipated IMAX films such as Iron Man 2, Alice in Wonderland, and Toy Story 3.[3] From 01/01/2010 to 03/11/2010, IMAX has had box office sales of $187 million compared to $14 million during the same period in 2009.[3]
Q1 FY 2010 (Ended March 31, 2010)
IMAX recorded record revenues of $72.8 million -- a 120% increase from Q1 FY 2009 revenues of $33.1 million.[4]
IMAX recorded net income of $26.6 million for the quarter, compared to a net loss of $2.6 million in Q1 FY 2009 (due to funding Avatar).
IMAX signed deals with 41 theaters in Q1, which was more than the firm's 2009 total.[4]
IMAX further reported that Q2 FY 2010 quarter-to-date box office sales are 78% higher than sales during the same period in FY 2009.[4].
Q2 FY 2010 (Ended June 30, 2010)
IMAX posted revenue of $55.6 million -- a 38% increase from Q2 fiscal 2009.[5] YTD, the firm has posted revenue of $128.4 million -- a 75% increase compared to the first half of 2009.[5]
IMAX has had 118 theater system signings YTD, compared to 35 in the first half of 2009.[5]
IMAX posted net income of $13.3 million for the quarter, compared to $2.6 million in Q2 fiscal 2009.[5]
The IMAX Theater Systems segment revenue doubled in the quarter, from $8.3 million in Q2 fiscal 2009 to $17.3 million.[5]
For the quarter, IMAX box office revenues increased 28% to $20.7 million on the success of Iron Man 2 and Toy Story 3, amongst others.[5]
Q3 FY 2010 (Ended September 30th, 2010)
IMAX reported revenues of $51.1 million, a 17.5% increase compared to Q3 fiscal 2009.[6]
The increased revenues boosted gross margin in turn, from $18.8 million in Q3 fiscal 2009 to $25.9 million.[6]
The firm reported net income of $6.7 million, compared to net income of $1.1 million in Q3 fiscal 2009.[6]
In addition, IMAX completed new 100 theater system signings in the quarter.[6]
IMAX also announced nine films for 2011, including "Harry Potter and the Deathly Hallows: Part II: An IMAX 3D Experience" and "Pirates of the Caribbean: On Stranger Tides: An IMAX 3D Experience."[6]
Financial Metrics 2006 2007 2008 2009
Revenue ($M) $127.71 $115.83 $106.23 $171.21
Gross Margin 41.2% 35.5% 35.3% 47.6%
Operating Margin 5.0% 5.7% 5.2% 11.6%
Net Earnings ($M) ($16.85) ($26.94) ($33.60) $5.02
Business Segments
IMAX Systems (32.7% of Revenue)
IMAX Corporation's biggest revenue source is its large-format theater systems. IMAX theater systems traditionally include a rolling loop 15/70-format projector; a six-channel, digital sound system delivering up to 12,000 watts; a screen with IMAX coating technology, and, if applicable, 3D glasses cleaning equipment. As part of the arrangement to sell or lease its theater systems, IMAX provides advice on theater planning and design, and supervision of installation services. Theater systems are also leased or sold with a license for the use of the IMAX brand. IMAX primarily offers its theater systems in four configurations: the GT projection system for the largest IMAX theaters; the SR system for smaller theaters; the IMAX MPX system, which is targeted for multiplex complexes, and a fourth category of theater systems featuring heavily curved and tilted screens that are used in dome-shaped theaters. From FY 2008 to FY 2009, IMAX Systems revenue increased 85%, due to the increased demand for 3-D film experiences.[7]
Films (32.4% of Revenue)
Films produced by IMAX Corporation are typically financed through third parties, whereby it will generally receive a film production fee in exchange for producing the film and will be a distributor of the film. The ownership rights to such films may be held by the film sponsors, the film investors and/or IMAX Corporation. It has developed technology that makes it possible for 35millimeter live-action film to be digitally transformed into IMAX's 15/70-format. This system, known as IMAX DMR, has opened the IMAX theater network up to film releases from Hollywood's broad library of films. For IMAX DMR releases, the original soundtrack of the 35 millimeter film is also re-mastered for IMAX's five or six-channel digital sound system components. From FY 2008 to FY 2009, Films revenue increased 50%.[7]
Theater System Maintenance (15.4% of Revenue)
The Theater System Maintenance segment IMAX theater projection system equipment in the IMAX theater network. Maintenance revenue continues to grow as the number of theaters in the IMAX network grows. Maintenance margins vary depending on the mix of theater system configurations in the theater network and the date of installation. From FY 2008 to FY 2009, Theater System Maintenance revenue increased 11.9%.[7]
Joint Revenue Sharing Arrangements (3.2% of Revenue)
The Joint Revenue Sharing Arrangements segment consist of all business partnerships IMAX is involved in. IMAX ended 2009 with 117 theaters operating under joint revenue sharing arrangements as compared to 52 theaters at the end of 2008. In 2008, 40 of the 52 theaters were installed in the third and fourth quarters, resulting in less than a full year of revenues being recorded. From FY 2008 to FY 2009, Joint Revenue sharing Arrangements revenue increased six-fold, from $3.4 million to $21.6 million.[7]
Theater Operations (13.2% of Revenue)
The Theater Operations segment consists of IMAX's owned and operated theaters business, resulting from box-office ticket and concession sales as tickets are sold, films are shown and upon the sale of various concessions. In addition, IMAX arranges business with third party theater owners resulting in the sharing of profits and losses which are recognized in Services revenue when reported by such theaters. IMAX also provides management services to certain theaters and recognizes revenue over the term of such services. From FY 2008 to FY 2009, Theater Operations revenue increased 12.4%.[7]
Other (3.1% of Revenue)
The Company rents 2D and 3D 15/70-format analog cameras and provides technical and post-production services to third-party producers for a fee. It has developed dual and single filmstrip 3D cameras. The IMAX 3D camera simultaneously shoots left-eye and right-eye images and its compact size allows filmmakers access to a variety of locations, such as underwater or aboard aircraft. The Company maintains cameras and other film equipment to support third-party producers and also offers production advice and technical assistance to filmmakers. From FY 2008 to FY 2009, Other revenue increased 7.2%.[7]
As of March 2009, a majority of IMAX theaters are in the U.S., but the firm also has an international presence.[7]
Trends and Forces
IMAX Grows at Same Pace as Technology and Demand for 3-D Films
Since superior entertainment technology differentiates IMAX from its competitors, the firm's success and growth is dependent on new technology. IMAX developed the MKII and IMAX 3D cameras to be able to film its signature shots, and the firm also developed technology to convert 2-D films to 3-D films.[8] As new entertainment technology emerges, and the demand for 3-D films continues to increase, IMAX hopes to continue profiting at a record pace.
The demand for 3-D films has grown exponentially in the past two years. The contribution of 3-D box office sales to total box office sales increased from 2% in 2008 to 11% in 2009.[9] Since 3-D films charge $3 per ticket more than 2-D films, having a 3-D version of a film can improve box office revenues by about 25%.[10] Evolving technology also means that IMAX competitors may be able to provide the same viewing experiences, however. For example, the launch of 3-D televisions will allow consumers to view 3-D films in the comfort of their own homes, and not in IMAX theaters.[11] IMAX plans to contribute to 3-D television popularity by writing television licenses to future 3-D films and advertisements in its theaters.[12]
IMAX Revenue Dependent on Box Office Success of Films
Like other movie theaters, such as Regal Entertainment , Cinemark, and privately-held AMC Entertainment, IMAX revenue is dependent on the popularity of the films it shows. Clearly if less blockbuster-popular movies are made, then less moviegoers will go to IMAX theaters and buy tickets. Furthermore, IMAX is reliant on films that fit to be made in 3-D, such as action-packed films and animated films. For example, the blockbuster comedy "The Hangover" was the 10th highest-grossing film in 2009,[13] but it is not practical for Imax to show it in 3-D. In the past four years, however, there has been an increasing demand for technologically advanced films. For example, the IMAX film "Avatar" grossed over $2.7 billion from 12/18/2009 to 04/27/2010.[13] IMAX stock has almost doubled (184%) in that time period.
With the success of Avatar, IMAX has made efforts to expand its film repertoire. On April 28th, IMAX signed a deal with filmmaker Warner Bros. through 2013.[2] The deal will allow Imax to digitize up to 20 Warner Bros. films in 3-D to show at Imax theaters, including the highly anticipated "Harry Potter and the Deathly Hallows."[2] Other anticipated IMAX films include "Iron Man 2," "Toy Story 3," and "Shrek: Forever After."
IMAX Theaters Expanding Internationally
With the success of IMAX theaters in the United States, the firm has made moves to have a greater international presence. The 2010 IMAX film Prince of Persia: The Sands of Time will be opened in 53 international theaters, spanning all continents (excluding Antarctica).[14] IMAX has been particularly aggressive in Russia, where it has worked with Russian media firm Rising Star Media to open two new theaters in Moscow and St. Petersburg in 2010.[15] IMAX has also worked with Russian retail and entertainment developer SBS to open a theater in Krasnodar, which has a population of 750,000.[16] Existing Russian IMAX theaters generated $9.4 million in box office revenues during the first three months of 2010.[16]
Competition
Movie Theaters
Regal Entertainment Group (RGC) RGC operates hundreds of movie theaters throughout the United States, showing 2-D versions of IMAX films.
Cinemark Holdings (CNK) Similarly to RGC, Cinemark directly competes with RGC for filmgoers ticket sales as well as IMAX for viewings of 2-D films also in 3-D.
Competition Imax (IMAX)[1] Regal Entertainment Group (RGC)[17] Cinemark Holdings (CNK)[18]
Revenue $Mil 169.35 2,893.00 1,976.50
Net Income $Mil 5.02 95.50 97.11
Operating Margin % 11.22% 9.4% 11.26%
Net Profit Margin % 2.90% 3.30% 4.90%
Film Makers
Walt Disney Company (DIS) -- Walt Disney Company writes and produces films that compete with IMAX produced films.
Dreamworks Animation SKG (DWA) -- Dreamworks also writes and produces films that compete with IMAX produced films, especially animated films such as Madagascar and Shrek.
Competition Imax (IMAX)[1] Walt Disney Company (DIS)[19] Dreamworks Animation SKG (DWA)[20]
Revenue $Mil 169.35 36,149.00 725.18
Net Income $Mil 5.02 3,307.00 151.03
Operating Margin % 2.90% 15.65% 20.9%
Net Profit Margin % 11.22% 9.15% 20.8%
IMAX had a 53.3% increase in revenue from 2007 to 2009[1] due to the growth of film technology and increased demand for 3-D films. The blockbuster film Avatar was IMAX's breakthrough film of the decade, as it generated $2.7 billion in box office revenues and created more demand for 3-D films. IMAX is also dependent on the quality and popularity of films that it shows, as 3-D box office sales are correlated to 2-D box office sales.[2] With its domestic success, IMAX has made moves to expand internationally. IMAX has made deals with two Russian entertainment firms to open theaters in Moscow, St. Petersburg and Krasnodar.
Business Overview
Business Financials
IMAX has profited immensely from the 3-D entertainment boom, starting in 2009. Before 2009, IMAX had net losses due to making multi-million dollar investments in technology and some failed projects.
FY 2009 Performance (ended December 31,2009)
Contents
1 Business Overview
1.1 Business Financials
1.1.1 FY 2009 Performance (ended December 31,2009)
1.1.2 Q1 FY 2010 (Ended March 31, 2010)
1.1.3 Q2 FY 2010 (Ended June 30, 2010)
1.1.4 Q3 FY 2010 (Ended September 30th, 2010)
1.2 Business Segments
1.2.1 IMAX Systems (32.7% of Revenue)
1.2.2 Films (32.4% of Revenue)
1.2.3 Theater System Maintenance (15.4% of Revenue)
1.2.4 Joint Revenue Sharing Arrangements (3.2% of Revenue)
1.2.5 Theater Operations (13.2% of Revenue)
1.2.6 Other (3.1% of Revenue)
2 Trends and Forces
2.1 IMAX Grows at Same Pace as Technology and Demand for 3-D Films
2.2 IMAX Revenue Dependent on Box Office Success of Films
2.3 IMAX Theaters Expanding Internationally
3 Competition
3.1 Movie Theaters
3.2 Film Makers
4 References
IMAX had a strong fiscal year 2009 due to the blockbuster movie, Avatar. In the fourth quarter, IMAX had revenues of $54.2 million -- a 98% increase from Q4 2008.[3] Also during 2009, IMAX expanded its number of theaters by 38%.[3] IMAX foresees similarly strong performance in 2010, due to the release of other anticipated IMAX films such as Iron Man 2, Alice in Wonderland, and Toy Story 3.[3] From 01/01/2010 to 03/11/2010, IMAX has had box office sales of $187 million compared to $14 million during the same period in 2009.[3]
Q1 FY 2010 (Ended March 31, 2010)
IMAX recorded record revenues of $72.8 million -- a 120% increase from Q1 FY 2009 revenues of $33.1 million.[4]
IMAX recorded net income of $26.6 million for the quarter, compared to a net loss of $2.6 million in Q1 FY 2009 (due to funding Avatar).
IMAX signed deals with 41 theaters in Q1, which was more than the firm's 2009 total.[4]
IMAX further reported that Q2 FY 2010 quarter-to-date box office sales are 78% higher than sales during the same period in FY 2009.[4].
Q2 FY 2010 (Ended June 30, 2010)
IMAX posted revenue of $55.6 million -- a 38% increase from Q2 fiscal 2009.[5] YTD, the firm has posted revenue of $128.4 million -- a 75% increase compared to the first half of 2009.[5]
IMAX has had 118 theater system signings YTD, compared to 35 in the first half of 2009.[5]
IMAX posted net income of $13.3 million for the quarter, compared to $2.6 million in Q2 fiscal 2009.[5]
The IMAX Theater Systems segment revenue doubled in the quarter, from $8.3 million in Q2 fiscal 2009 to $17.3 million.[5]
For the quarter, IMAX box office revenues increased 28% to $20.7 million on the success of Iron Man 2 and Toy Story 3, amongst others.[5]
Q3 FY 2010 (Ended September 30th, 2010)
IMAX reported revenues of $51.1 million, a 17.5% increase compared to Q3 fiscal 2009.[6]
The increased revenues boosted gross margin in turn, from $18.8 million in Q3 fiscal 2009 to $25.9 million.[6]
The firm reported net income of $6.7 million, compared to net income of $1.1 million in Q3 fiscal 2009.[6]
In addition, IMAX completed new 100 theater system signings in the quarter.[6]
IMAX also announced nine films for 2011, including "Harry Potter and the Deathly Hallows: Part II: An IMAX 3D Experience" and "Pirates of the Caribbean: On Stranger Tides: An IMAX 3D Experience."[6]
Financial Metrics 2006 2007 2008 2009
Revenue ($M) $127.71 $115.83 $106.23 $171.21
Gross Margin 41.2% 35.5% 35.3% 47.6%
Operating Margin 5.0% 5.7% 5.2% 11.6%
Net Earnings ($M) ($16.85) ($26.94) ($33.60) $5.02
Business Segments
IMAX Systems (32.7% of Revenue)
IMAX Corporation's biggest revenue source is its large-format theater systems. IMAX theater systems traditionally include a rolling loop 15/70-format projector; a six-channel, digital sound system delivering up to 12,000 watts; a screen with IMAX coating technology, and, if applicable, 3D glasses cleaning equipment. As part of the arrangement to sell or lease its theater systems, IMAX provides advice on theater planning and design, and supervision of installation services. Theater systems are also leased or sold with a license for the use of the IMAX brand. IMAX primarily offers its theater systems in four configurations: the GT projection system for the largest IMAX theaters; the SR system for smaller theaters; the IMAX MPX system, which is targeted for multiplex complexes, and a fourth category of theater systems featuring heavily curved and tilted screens that are used in dome-shaped theaters. From FY 2008 to FY 2009, IMAX Systems revenue increased 85%, due to the increased demand for 3-D film experiences.[7]
Films (32.4% of Revenue)
Films produced by IMAX Corporation are typically financed through third parties, whereby it will generally receive a film production fee in exchange for producing the film and will be a distributor of the film. The ownership rights to such films may be held by the film sponsors, the film investors and/or IMAX Corporation. It has developed technology that makes it possible for 35millimeter live-action film to be digitally transformed into IMAX's 15/70-format. This system, known as IMAX DMR, has opened the IMAX theater network up to film releases from Hollywood's broad library of films. For IMAX DMR releases, the original soundtrack of the 35 millimeter film is also re-mastered for IMAX's five or six-channel digital sound system components. From FY 2008 to FY 2009, Films revenue increased 50%.[7]
Theater System Maintenance (15.4% of Revenue)
The Theater System Maintenance segment IMAX theater projection system equipment in the IMAX theater network. Maintenance revenue continues to grow as the number of theaters in the IMAX network grows. Maintenance margins vary depending on the mix of theater system configurations in the theater network and the date of installation. From FY 2008 to FY 2009, Theater System Maintenance revenue increased 11.9%.[7]
Joint Revenue Sharing Arrangements (3.2% of Revenue)
The Joint Revenue Sharing Arrangements segment consist of all business partnerships IMAX is involved in. IMAX ended 2009 with 117 theaters operating under joint revenue sharing arrangements as compared to 52 theaters at the end of 2008. In 2008, 40 of the 52 theaters were installed in the third and fourth quarters, resulting in less than a full year of revenues being recorded. From FY 2008 to FY 2009, Joint Revenue sharing Arrangements revenue increased six-fold, from $3.4 million to $21.6 million.[7]
Theater Operations (13.2% of Revenue)
The Theater Operations segment consists of IMAX's owned and operated theaters business, resulting from box-office ticket and concession sales as tickets are sold, films are shown and upon the sale of various concessions. In addition, IMAX arranges business with third party theater owners resulting in the sharing of profits and losses which are recognized in Services revenue when reported by such theaters. IMAX also provides management services to certain theaters and recognizes revenue over the term of such services. From FY 2008 to FY 2009, Theater Operations revenue increased 12.4%.[7]
Other (3.1% of Revenue)
The Company rents 2D and 3D 15/70-format analog cameras and provides technical and post-production services to third-party producers for a fee. It has developed dual and single filmstrip 3D cameras. The IMAX 3D camera simultaneously shoots left-eye and right-eye images and its compact size allows filmmakers access to a variety of locations, such as underwater or aboard aircraft. The Company maintains cameras and other film equipment to support third-party producers and also offers production advice and technical assistance to filmmakers. From FY 2008 to FY 2009, Other revenue increased 7.2%.[7]
As of March 2009, a majority of IMAX theaters are in the U.S., but the firm also has an international presence.[7]
Trends and Forces
IMAX Grows at Same Pace as Technology and Demand for 3-D Films
Since superior entertainment technology differentiates IMAX from its competitors, the firm's success and growth is dependent on new technology. IMAX developed the MKII and IMAX 3D cameras to be able to film its signature shots, and the firm also developed technology to convert 2-D films to 3-D films.[8] As new entertainment technology emerges, and the demand for 3-D films continues to increase, IMAX hopes to continue profiting at a record pace.
The demand for 3-D films has grown exponentially in the past two years. The contribution of 3-D box office sales to total box office sales increased from 2% in 2008 to 11% in 2009.[9] Since 3-D films charge $3 per ticket more than 2-D films, having a 3-D version of a film can improve box office revenues by about 25%.[10] Evolving technology also means that IMAX competitors may be able to provide the same viewing experiences, however. For example, the launch of 3-D televisions will allow consumers to view 3-D films in the comfort of their own homes, and not in IMAX theaters.[11] IMAX plans to contribute to 3-D television popularity by writing television licenses to future 3-D films and advertisements in its theaters.[12]
IMAX Revenue Dependent on Box Office Success of Films
Like other movie theaters, such as Regal Entertainment , Cinemark, and privately-held AMC Entertainment, IMAX revenue is dependent on the popularity of the films it shows. Clearly if less blockbuster-popular movies are made, then less moviegoers will go to IMAX theaters and buy tickets. Furthermore, IMAX is reliant on films that fit to be made in 3-D, such as action-packed films and animated films. For example, the blockbuster comedy "The Hangover" was the 10th highest-grossing film in 2009,[13] but it is not practical for Imax to show it in 3-D. In the past four years, however, there has been an increasing demand for technologically advanced films. For example, the IMAX film "Avatar" grossed over $2.7 billion from 12/18/2009 to 04/27/2010.[13] IMAX stock has almost doubled (184%) in that time period.
With the success of Avatar, IMAX has made efforts to expand its film repertoire. On April 28th, IMAX signed a deal with filmmaker Warner Bros. through 2013.[2] The deal will allow Imax to digitize up to 20 Warner Bros. films in 3-D to show at Imax theaters, including the highly anticipated "Harry Potter and the Deathly Hallows."[2] Other anticipated IMAX films include "Iron Man 2," "Toy Story 3," and "Shrek: Forever After."
IMAX Theaters Expanding Internationally
With the success of IMAX theaters in the United States, the firm has made moves to have a greater international presence. The 2010 IMAX film Prince of Persia: The Sands of Time will be opened in 53 international theaters, spanning all continents (excluding Antarctica).[14] IMAX has been particularly aggressive in Russia, where it has worked with Russian media firm Rising Star Media to open two new theaters in Moscow and St. Petersburg in 2010.[15] IMAX has also worked with Russian retail and entertainment developer SBS to open a theater in Krasnodar, which has a population of 750,000.[16] Existing Russian IMAX theaters generated $9.4 million in box office revenues during the first three months of 2010.[16]
Competition
Movie Theaters
Regal Entertainment Group (RGC) RGC operates hundreds of movie theaters throughout the United States, showing 2-D versions of IMAX films.
Cinemark Holdings (CNK) Similarly to RGC, Cinemark directly competes with RGC for filmgoers ticket sales as well as IMAX for viewings of 2-D films also in 3-D.
Competition Imax (IMAX)[1] Regal Entertainment Group (RGC)[17] Cinemark Holdings (CNK)[18]
Revenue $Mil 169.35 2,893.00 1,976.50
Net Income $Mil 5.02 95.50 97.11
Operating Margin % 11.22% 9.4% 11.26%
Net Profit Margin % 2.90% 3.30% 4.90%
Film Makers
Walt Disney Company (DIS) -- Walt Disney Company writes and produces films that compete with IMAX produced films.
Dreamworks Animation SKG (DWA) -- Dreamworks also writes and produces films that compete with IMAX produced films, especially animated films such as Madagascar and Shrek.
Competition Imax (IMAX)[1] Walt Disney Company (DIS)[19] Dreamworks Animation SKG (DWA)[20]
Revenue $Mil 169.35 36,149.00 725.18
Net Income $Mil 5.02 3,307.00 151.03
Operating Margin % 2.90% 15.65% 20.9%
Net Profit Margin % 11.22% 9.15% 20.8%
IMAX Corporation (TSX:IMX NASDAQ:IMAX) is a Canadian entertainment technology company with an industry leading growth rate. IMAX's principal business is the design, manufacture, sale and lease of theater systems based on its technology for large-format, 15-perforation film frame, 70 millimeter format (15/70-format) theaters. IMAX competes with other movie theaters, such as Regal Entertainment and Cinemark Holdings.
IMAX had a 53.3% increase in revenue from 2007 to 2009[1] due to the growth of film technology and increased demand for 3-D films. The blockbuster film Avatar was IMAX's breakthrough film of the decade, as it generated $2.7 billion in box office revenues and created more demand for 3-D films. IMAX is also dependent on the quality and popularity of films that it shows, as 3-D box office sales are correlated to 2-D box office sales.[2] With its domestic success, IMAX has made moves to expand internationally. IMAX has made deals with two Russian entertainment firms to open theaters in Moscow, St. Petersburg and Krasnodar.
Business Overview
Business Financials
IMAX has profited immensely from the 3-D entertainment boom, starting in 2009. Before 2009, IMAX had net losses due to making multi-million dollar investments in technology and some failed projects.
FY 2009 Performance (ended December 31,2009)
Contents
1 Business Overview
1.1 Business Financials
1.1.1 FY 2009 Performance (ended December 31,2009)
1.1.2 Q1 FY 2010 (Ended March 31, 2010)
1.1.3 Q2 FY 2010 (Ended June 30, 2010)
1.1.4 Q3 FY 2010 (Ended September 30th, 2010)
1.2 Business Segments
1.2.1 IMAX Systems (32.7% of Revenue)
1.2.2 Films (32.4% of Revenue)
1.2.3 Theater System Maintenance (15.4% of Revenue)
1.2.4 Joint Revenue Sharing Arrangements (3.2% of Revenue)
1.2.5 Theater Operations (13.2% of Revenue)
1.2.6 Other (3.1% of Revenue)
2 Trends and Forces
2.1 IMAX Grows at Same Pace as Technology and Demand for 3-D Films
2.2 IMAX Revenue Dependent on Box Office Success of Films
2.3 IMAX Theaters Expanding Internationally
3 Competition
3.1 Movie Theaters
3.2 Film Makers
4 References
IMAX had a strong fiscal year 2009 due to the blockbuster movie, Avatar. In the fourth quarter, IMAX had revenues of $54.2 million -- a 98% increase from Q4 2008.[3] Also during 2009, IMAX expanded its number of theaters by 38%.[3] IMAX foresees similarly strong performance in 2010, due to the release of other anticipated IMAX films such as Iron Man 2, Alice in Wonderland, and Toy Story 3.[3] From 01/01/2010 to 03/11/2010, IMAX has had box office sales of $187 million compared to $14 million during the same period in 2009.[3]
Q1 FY 2010 (Ended March 31, 2010)
IMAX recorded record revenues of $72.8 million -- a 120% increase from Q1 FY 2009 revenues of $33.1 million.[4]
IMAX recorded net income of $26.6 million for the quarter, compared to a net loss of $2.6 million in Q1 FY 2009 (due to funding Avatar).
IMAX signed deals with 41 theaters in Q1, which was more than the firm's 2009 total.[4]
IMAX further reported that Q2 FY 2010 quarter-to-date box office sales are 78% higher than sales during the same period in FY 2009.[4].
Q2 FY 2010 (Ended June 30, 2010)
IMAX posted revenue of $55.6 million -- a 38% increase from Q2 fiscal 2009.[5] YTD, the firm has posted revenue of $128.4 million -- a 75% increase compared to the first half of 2009.[5]
IMAX has had 118 theater system signings YTD, compared to 35 in the first half of 2009.[5]
IMAX posted net income of $13.3 million for the quarter, compared to $2.6 million in Q2 fiscal 2009.[5]
The IMAX Theater Systems segment revenue doubled in the quarter, from $8.3 million in Q2 fiscal 2009 to $17.3 million.[5]
For the quarter, IMAX box office revenues increased 28% to $20.7 million on the success of Iron Man 2 and Toy Story 3, amongst others.[5]
Q3 FY 2010 (Ended September 30th, 2010)
IMAX reported revenues of $51.1 million, a 17.5% increase compared to Q3 fiscal 2009.[6]
The increased revenues boosted gross margin in turn, from $18.8 million in Q3 fiscal 2009 to $25.9 million.[6]
The firm reported net income of $6.7 million, compared to net income of $1.1 million in Q3 fiscal 2009.[6]
In addition, IMAX completed new 100 theater system signings in the quarter.[6]
IMAX also announced nine films for 2011, including "Harry Potter and the Deathly Hallows: Part II: An IMAX 3D Experience" and "Pirates of the Caribbean: On Stranger Tides: An IMAX 3D Experience."[6]
Financial Metrics 2006 2007 2008 2009
Revenue ($M) $127.71 $115.83 $106.23 $171.21
Gross Margin 41.2% 35.5% 35.3% 47.6%
Operating Margin 5.0% 5.7% 5.2% 11.6%
Net Earnings ($M) ($16.85) ($26.94) ($33.60) $5.02
Business Segments
IMAX Systems (32.7% of Revenue)
IMAX Corporation's biggest revenue source is its large-format theater systems. IMAX theater systems traditionally include a rolling loop 15/70-format projector; a six-channel, digital sound system delivering up to 12,000 watts; a screen with IMAX coating technology, and, if applicable, 3D glasses cleaning equipment. As part of the arrangement to sell or lease its theater systems, IMAX provides advice on theater planning and design, and supervision of installation services. Theater systems are also leased or sold with a license for the use of the IMAX brand. IMAX primarily offers its theater systems in four configurations: the GT projection system for the largest IMAX theaters; the SR system for smaller theaters; the IMAX MPX system, which is targeted for multiplex complexes, and a fourth category of theater systems featuring heavily curved and tilted screens that are used in dome-shaped theaters. From FY 2008 to FY 2009, IMAX Systems revenue increased 85%, due to the increased demand for 3-D film experiences.[7]
Films (32.4% of Revenue)
Films produced by IMAX Corporation are typically financed through third parties, whereby it will generally receive a film production fee in exchange for producing the film and will be a distributor of the film. The ownership rights to such films may be held by the film sponsors, the film investors and/or IMAX Corporation. It has developed technology that makes it possible for 35millimeter live-action film to be digitally transformed into IMAX's 15/70-format. This system, known as IMAX DMR, has opened the IMAX theater network up to film releases from Hollywood's broad library of films. For IMAX DMR releases, the original soundtrack of the 35 millimeter film is also re-mastered for IMAX's five or six-channel digital sound system components. From FY 2008 to FY 2009, Films revenue increased 50%.[7]
Theater System Maintenance (15.4% of Revenue)
The Theater System Maintenance segment IMAX theater projection system equipment in the IMAX theater network. Maintenance revenue continues to grow as the number of theaters in the IMAX network grows. Maintenance margins vary depending on the mix of theater system configurations in the theater network and the date of installation. From FY 2008 to FY 2009, Theater System Maintenance revenue increased 11.9%.[7]
Joint Revenue Sharing Arrangements (3.2% of Revenue)
The Joint Revenue Sharing Arrangements segment consist of all business partnerships IMAX is involved in. IMAX ended 2009 with 117 theaters operating under joint revenue sharing arrangements as compared to 52 theaters at the end of 2008. In 2008, 40 of the 52 theaters were installed in the third and fourth quarters, resulting in less than a full year of revenues being recorded. From FY 2008 to FY 2009, Joint Revenue sharing Arrangements revenue increased six-fold, from $3.4 million to $21.6 million.[7]
Theater Operations (13.2% of Revenue)
The Theater Operations segment consists of IMAX's owned and operated theaters business, resulting from box-office ticket and concession sales as tickets are sold, films are shown and upon the sale of various concessions. In addition, IMAX arranges business with third party theater owners resulting in the sharing of profits and losses which are recognized in Services revenue when reported by such theaters. IMAX also provides management services to certain theaters and recognizes revenue over the term of such services. From FY 2008 to FY 2009, Theater Operations revenue increased 12.4%.[7]
Other (3.1% of Revenue)
The Company rents 2D and 3D 15/70-format analog cameras and provides technical and post-production services to third-party producers for a fee. It has developed dual and single filmstrip 3D cameras. The IMAX 3D camera simultaneously shoots left-eye and right-eye images and its compact size allows filmmakers access to a variety of locations, such as underwater or aboard aircraft. The Company maintains cameras and other film equipment to support third-party producers and also offers production advice and technical assistance to filmmakers. From FY 2008 to FY 2009, Other revenue increased 7.2%.[7]
As of March 2009, a majority of IMAX theaters are in the U.S., but the firm also has an international presence.[7]
Trends and Forces
IMAX Grows at Same Pace as Technology and Demand for 3-D Films
Since superior entertainment technology differentiates IMAX from its competitors, the firm's success and growth is dependent on new technology. IMAX developed the MKII and IMAX 3D cameras to be able to film its signature shots, and the firm also developed technology to convert 2-D films to 3-D films.[8] As new entertainment technology emerges, and the demand for 3-D films continues to increase, IMAX hopes to continue profiting at a record pace.
The demand for 3-D films has grown exponentially in the past two years. The contribution of 3-D box office sales to total box office sales increased from 2% in 2008 to 11% in 2009.[9] Since 3-D films charge $3 per ticket more than 2-D films, having a 3-D version of a film can improve box office revenues by about 25%.[10] Evolving technology also means that IMAX competitors may be able to provide the same viewing experiences, however. For example, the launch of 3-D televisions will allow consumers to view 3-D films in the comfort of their own homes, and not in IMAX theaters.[11] IMAX plans to contribute to 3-D television popularity by writing television licenses to future 3-D films and advertisements in its theaters.[12]
IMAX Revenue Dependent on Box Office Success of Films
Like other movie theaters, such as Regal Entertainment , Cinemark, and privately-held AMC Entertainment, IMAX revenue is dependent on the popularity of the films it shows. Clearly if less blockbuster-popular movies are made, then less moviegoers will go to IMAX theaters and buy tickets. Furthermore, IMAX is reliant on films that fit to be made in 3-D, such as action-packed films and animated films. For example, the blockbuster comedy "The Hangover" was the 10th highest-grossing film in 2009,[13] but it is not practical for Imax to show it in 3-D. In the past four years, however, there has been an increasing demand for technologically advanced films. For example, the IMAX film "Avatar" grossed over $2.7 billion from 12/18/2009 to 04/27/2010.[13] IMAX stock has almost doubled (184%) in that time period.
With the success of Avatar, IMAX has made efforts to expand its film repertoire. On April 28th, IMAX signed a deal with filmmaker Warner Bros. through 2013.[2] The deal will allow Imax to digitize up to 20 Warner Bros. films in 3-D to show at Imax theaters, including the highly anticipated "Harry Potter and the Deathly Hallows."[2] Other anticipated IMAX films include "Iron Man 2," "Toy Story 3," and "Shrek: Forever After."
IMAX Theaters Expanding Internationally
With the success of IMAX theaters in the United States, the firm has made moves to have a greater international presence. The 2010 IMAX film Prince of Persia: The Sands of Time will be opened in 53 international theaters, spanning all continents (excluding Antarctica).[14] IMAX has been particularly aggressive in Russia, where it has worked with Russian media firm Rising Star Media to open two new theaters in Moscow and St. Petersburg in 2010.[15] IMAX has also worked with Russian retail and entertainment developer SBS to open a theater in Krasnodar, which has a population of 750,000.[16] Existing Russian IMAX theaters generated $9.4 million in box office revenues during the first three months of 2010.[16]
Competition
Movie Theaters
Regal Entertainment Group (RGC) RGC operates hundreds of movie theaters throughout the United States, showing 2-D versions of IMAX films.
Cinemark Holdings (CNK) Similarly to RGC, Cinemark directly competes with RGC for filmgoers ticket sales as well as IMAX for viewings of 2-D films also in 3-D.
Competition Imax (IMAX)[1] Regal Entertainment Group (RGC)[17] Cinemark Holdings (CNK)[18]
Revenue $Mil 169.35 2,893.00 1,976.50
Net Income $Mil 5.02 95.50 97.11
Operating Margin % 11.22% 9.4% 11.26%
Net Profit Margin % 2.90% 3.30% 4.90%
Film Makers
Walt Disney Company (DIS) -- Walt Disney Company writes and produces films that compete with IMAX produced films.
Dreamworks Animation SKG (DWA) -- Dreamworks also writes and produces films that compete with IMAX produced films, especially animated films such as Madagascar and Shrek.
Competition Imax (IMAX)[1] Walt Disney Company (DIS)[19] Dreamworks Animation SKG (DWA)[20]
Revenue $Mil 169.35 36,149.00 725.18
Net Income $Mil 5.02 3,307.00 151.03
Operating Margin % 2.90% 15.65% 20.9%
Net Profit Margin % 11.22% 9.15% 20.8%
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