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IMAX China Holding, Inc. reported first half 2019 Greater China revenue of US$59.3 million, up 15.1% year-over-year, primarily driven by strong growth in our network business. Gross profit of US$41.0 million represented 69.3% of revenue. Adjusted profit for the first half of 2019 came in at US$24.9 million, up 17.0%, compared to the first half last year, demonstrating the inherent operating leverage from our network effect. Adjusted profit margin of 42.0% was up 70 basis points compared to the prior year period. For adjustments to profit for the period and a full detail of financial results, please refer to the corporate filing posted with the Hong Kong Stock Exchange or to the earnings results posted on the Investor Relations section of the IMAX China web site (http://www.imax.cn/investor).
"IMAX China delivered record box office, revenue and adjusted net income in the first half, affirming the strength of our business model and long-term strategy in the market. Thanks to strong execution, we grew market share and enhanced our position in the ecosystem as the premiere destination for blockbuster entertainment," said Richard L. Gelfond, Chairman of IMAX China.
Network Update
The Company continued to see strong demand for new IMAX theatres in the first half of 2019. The Company signed agreements for 51 theater systems in the first half of 2019, up from 34 in prior year period. This brings total backlog as of June 30, 2019 to 298 theater systems, including a 40-theatre agreement recently announced with CGV, the largest in scale with them in China since our partnership began in2010 and predominantly featuring IMAX with Laser® projection system.
"Our powerful end-to-end technology, refined local programming strategy and data-driven marketing are creating strong demand for The IMAX Experience among our network partners, and served as the catalyst for the landmark 40-theatre deal we signed with CGV in the quarter," said Mr. Gelfond.
The Company also installed 30 new and upgraded theatre systems in the first half of 2019, up from 25 installations in the first half of 2018. As of June 30, 2019, there were 662 systems in the IMAX theatre network in Greater China, of which 647 were in commercial multiplexes. Currently 328 of these theaters operate under full revenue sharing arrangements, 100 under hybrid revenue sharing arrangements and 234 operate under sales arrangements.
Box Office Update
The compelling mix of Hollywood and local-language blockbusters drove a 24% increase in IMAX China gross box office to US$236 million in the first half of 2019, up from US$190 million in the prior-year period. Our refined programming strategy and increasing consumer recognition as the 'go-to' destination for blockbusters led to a 35% year-over-year growth in our mainland China box office.
"We hold a privileged position in the Chinese entertainment ecosystem, and our unique technology, expanding network, and ongoing focus on Hollywood and local language blockbusters will continue to strengthen our industry leadership in China and create value for our shareholders," said Mr. Gelfond.
IMAX China Dividend
IMAX China today announced that its Board of Directors approved the payment of an interim cash dividend of approximately US$7 million or US$0.02 per share.
"IMAX China delivered record box office, revenue and adjusted net income in the first half, affirming the strength of our business model and long-term strategy in the market. Thanks to strong execution, we grew market share and enhanced our position in the ecosystem as the premiere destination for blockbuster entertainment," said Richard L. Gelfond, Chairman of IMAX China.
Network Update
The Company continued to see strong demand for new IMAX theatres in the first half of 2019. The Company signed agreements for 51 theater systems in the first half of 2019, up from 34 in prior year period. This brings total backlog as of June 30, 2019 to 298 theater systems, including a 40-theatre agreement recently announced with CGV, the largest in scale with them in China since our partnership began in2010 and predominantly featuring IMAX with Laser® projection system.
"Our powerful end-to-end technology, refined local programming strategy and data-driven marketing are creating strong demand for The IMAX Experience among our network partners, and served as the catalyst for the landmark 40-theatre deal we signed with CGV in the quarter," said Mr. Gelfond.
The Company also installed 30 new and upgraded theatre systems in the first half of 2019, up from 25 installations in the first half of 2018. As of June 30, 2019, there were 662 systems in the IMAX theatre network in Greater China, of which 647 were in commercial multiplexes. Currently 328 of these theaters operate under full revenue sharing arrangements, 100 under hybrid revenue sharing arrangements and 234 operate under sales arrangements.
Box Office Update
The compelling mix of Hollywood and local-language blockbusters drove a 24% increase in IMAX China gross box office to US$236 million in the first half of 2019, up from US$190 million in the prior-year period. Our refined programming strategy and increasing consumer recognition as the 'go-to' destination for blockbusters led to a 35% year-over-year growth in our mainland China box office.
"We hold a privileged position in the Chinese entertainment ecosystem, and our unique technology, expanding network, and ongoing focus on Hollywood and local language blockbusters will continue to strengthen our industry leadership in China and create value for our shareholders," said Mr. Gelfond.
IMAX China Dividend
IMAX China today announced that its Board of Directors approved the payment of an interim cash dividend of approximately US$7 million or US$0.02 per share.