IMAX China profits tumble 13pc amid box-office slump
The company reported a full-year profit of US$36.09m from a loss of US$182m the previous year, while revenue grew 7.2pc to US$118.5m
IMAX China Holdings, the sole platform for the release of ultra-wide screen IMAX format movies in the country, recorded a full-year net profit of US$36.09 million in 2016, while its adjusted profit dropped 13.4 per cent, below market expectations.
On an adjusted basis, net profit slid to US$37.6 million in 2016 from US$43.35 million in the previous year, missing consensus analyst estimates of US$39.88 million yuan in a Reuters poll, as the stalled expansion of China’s box-office receipts cast a shadow over the audacious growth plan of the Shanghai-based cinematic technology provider.
Revenue last year grew 7.2 per cent to US$118.5 million from a year earlier.
IMAX China shares advanced 8.4 per cent to close at HK$36.0 on Friday, although the stock has still has lost more than 5.3 per cent since the start of this year.
The latest financial figures come as Chinese audiences have refrained from paying a premium to upgrade their movie experiences to what is perceived to be an immersive presentation.