Imax broke its box office records in China during the Moon-New Year holiday weekend and predicted the results that will happen if more US movie theaters start operating again this summer, CEO Rich Gelfond told CNBC on Tuesday.
The company, which delivers impressive film experiences, said it earned $ 25 million between Friday and Sunday, an increase of 45% compared to a pre-pandemic record.
‘It tells you [that] if it’s safe to go outside and people want to go, they’ll run to go to the movies, ‘said Gelfond, who appeared in’ Closing Bell ‘after trading on Wall Street ended for the day.
‘Detective Chinatown 3’, a comedy adventure released last year from its new lunar year, generated a large portion of Imax’s ticket sales over the three – day period. The film grossed $ 23.5 million, which was the best result Imax has ever seen for a Chinese film. The action movie “A Writer’s Odyssey” and “New Gods: Nezha Reborn” animation also helped reach Imax, as well as gross attendance and gross sales.
Imax shares rose more than 6% on Tuesday, the best day since November. The stock closed at $ 19.85 and was up more than 5% after hours.
Imax admitted more than 1 million people to theaters in China on Friday, which was the best one-day attendance on record. The results come despite capacity constraints remaining at entertainment establishments in China. The $ 25 million Imax earned at the box office was better than it had seen during the comparable opening week in 2019, which preceded the coronavirus pandemic.
Most theaters in China have 75% capacity limit, while parts of the country limit higher broadcasts of Covid-19 to 50%. American theater restrictions differ by state. Restrictions range from 25% in Minnesota to 50% in Indiana to 100% in Alaska, according to data held by the National Association of Theater Owners.
The seven-day lunar New Year’s Day ends Wednesday. Theaters were closed in China this time last year when the country closed in response to the rapidly spreading virus that was first discovered late in 2019 in the city of Wuhan in Hubei province.
The film rush was fueled by the traditional travel season in China which has been largely hampered by coronavirus restrictions. With the removal of travel plans, millions of time was spent on the movies.
Gelfond said Imax expected a strong rise in China over the weekend.
“I think the only thing you can say is that it’s the pent-up demand that people just get tired of sitting on their benches and, you know, watching streaming or whatever they’re doing,” he said. “I think they’re just happy to come out, and I think that bodes well for the rest of the world.”
Amid the pandemic, Imax’s operating income fell by 74% in 2020 to September from the first three quarters of the previous year. The company will report its performance in the fourth quarter and full year 2020 next month.
Gelfond said in December that U.S. film releases in 2021, including a film that was postponed from the original releases last year, would be an embarrassment of wealth “for Imax if theaters in the country open earlier this year.
According to online ticketing platform Maoyan Entertainment, mainland China has 6.7 billion yuan, or $ 1.05 billion, in the film industry in general. The figure is above the record of 5.9 billion yuan brought in during the same period in 2019.
Since theaters reopened there in June, box office revenue has increased. Coronavirus cases have declined sharply in countries such as China, Australia and South Korea, and movie ticket sales have increased.
Global film ticket sales fell by 70% in 2020 from the previous year. Asia-Pacific ticket sales accounted for about 51% of global sales, up from 41% in 2019, based on information from Comscore and Gower Street. The US and Canadian box office accounted for only 18% of sales in 2020, compared to 30% in 2019.
– Reuters contributed to this report.