Shang-Chi and Black Widow Boost IMAX Earnings Amid Pandemic Lull

Marvel Studios' heroes may have rescued IMAX from a disastrous pandemic. The company reported $142 million in global box office revenue and $56.6 million in revenue in the third quarter of 2021. That's its best earnings report since the pandemic began and it's mainly driven by Marvel's Black Widow and Shang-Chi and the Legend of the Ten Rings. The report comes after a strong all-around box office in October, with movies like Venom: Let There Be Carnage, No Time to Die, and Dune boosting the overall global box office to more than $600 million in the month. That's the best month this year and better than the $544 million earned in October 2020.

In a statement, Richard L. Gelfond, CEO of IMAX Corporation, said, "The third quarter was a major turning point for IMAX. We delivered over $142 million in Global Box Office, a clear sign of significant pent up consumer demand with momentum accelerating into a pre-pandemic September performance and all-time Company record in October, which is on track to be one of the top ten months in the company's history,". "The power of the IMAX theatrical window for blockbuster films is clear as we continue to draw moviegoers to the theaters, gain market share, and grow our relationships with local exhibitors, studios, and filmmakers.

"IMAX's asset-lite model again proved to be a strong differentiator, helping us to deliver year-over-year growth in revenue and achieve another quarter of improved operating results. These results are also reflected in our balance sheet, where our excess liquidity provides security and capital allocation flexibility.

"As anticipated, the domestic market continued its recovery with sequential growth in box office. Local language box office was also a strong performer which already eclipsed our record breaking 2019 local language box office. We are seeing greater confidence in the overall slate as well, as the IMAX-friendly franchise-heavy schedule has solidified through 2022.

"We feel confident that the table is set for a continued rebound in domestic and international blockbuster moviegoing which is reflected in our decision to opportunistically repurchase shares. With solid operating momentum, strong market share and multiple tentpole films set to be released in the remainder Q4 and 2022, IMAX is well positioned to deliver and strengthen our position as one of the world's premier entertainment experience."

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