IMAX Reports Record $42.2M Q3 Loss

Post by: Rick Ellis 29 October, 2020

With movie theaters in most of the world either shut down or operating at a reduced capacity, it's probably not a surprise that IMAX is reporting that it had a very difficult third quarter.

The company reported a loss of $47.2 million on revenues of $37.3 million for the third quarter of 2020.

But in a call with investors and the press, CEO Rich Gelfond said the company was well positioned to last through the current pandemic. "Our financial position gives us years of runway to manage through the current downturn," he told investors. He also stressed that he believes the theatrical movie model will survive the pandemic. "The narrative right now isn’t correct about the future of streaming versus the future of theatrical. I have no doubt the theatrical release will be integral to the chain that results in streaming."

Gelfond pointed to the relative success of the Asian theatrical markets. A highlight for IMAX was China, where IMAX's average weekly box office has been approximately 95% of the 2019 level in the second half of the year.

Less clear is the situation in North America, where most of the company's screens remained closed. That situation has led to a decision earlier this month to furlough 150 employees in the U.S. for at least two months. That move will lead to a savings of about $1,000,000 a month.

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Last modified on Thursday, 29 October 2020 09:31