IMAX China has recently announced its full year results for 2017. The cinema chain generated revenues totaling at least 126.5 million during the year with gross profit valuing at least $77.4 million.
In further details, the Adjusted Profit for 2017 recorded $45.9 million during the period which is a 22% increase generally. This is the result of the recent installation of eight additional sales-type theaters compared to 2016.
“We implemented initiatives aimed at refining our programming strategy to focus on capturing more local language box office.” Chairman of IMAX China Richard L. Gelfond told reports. Gelfond added that the company reduced costs and facilitated more operating leverage throughout as part of the initiative implementation.
A 19% reduction in SG&A was also seen during the period which excludes the company’s cost-reduction initiatives.
IMAX DMR® titles’ Gross box office generated $290.8 million in 2017 – a slight decline from $295.7 million in the preceding year.
“Record installations in 2017, combined with early positive results from our revenue and cost-savings initiatives, resulted in adjusted profit growth of 22%, to an all-time high of $46 million,”
“As a result of our continued free cash flow generation, strong balance sheet and confidence in the Company’s long-term growth prospects, I am pleased to announce that our Board of Directors recommended the payment of a final dividend in the amount of $0.04 per share, equivalent to HK$0.31 per share, or roughly $14 million for the 2017 year.” Gelfond explained further.
“We think this decision is a key component to creating long-term value for shareholders. Overall, we believe our asset-light approach to the cinema business, continued signings and installation momentum. We refined programming strategy strategically position IMAX China for the years ahead.”
IMAX China Dividend
In other news, IMAX China has also announced that its Board of Directors recommended $0.04 per share or $14 million as final cash dividend payment value for 2017. However, the IMAX shareholders are yet to vote on such at the coming annual meeting of the company. IMAX China also plans to extend the value of the dividend as the earnings of the company faces major growth.
As of December 2017, the total numbers of systems in the IMAX theater network is 544. 527 of these operate in commercial multiplexes. Also, 340 of these theater run under the revenue-sharing arrangements whereas 187 operate under sales and sales-type lease arrangements. IMAX China also erected 120 new theatre systems in 2017 alone. This is an up from the 117 new installations recorded during 2016’s term.