[ad_1]
Imax broke box office records in China over Lunar New Year weekend and the results predict what will happen when more U.S. theaters resume operations this summer, CEO Rich Gelfond told CNBC on Tuesday.
The company, which produces immersive cinematic experiences, said it grossed $ 25 million between Friday and Sunday, a 45% increase from a pre-pandemic record.
“That tells you [that] when it’s safe to go out and people want to go, they’re going to run to the movies, ”said Gelfond, who appeared on“ Closing Bell ”after the day ended on Wall Street.
“Detective Chinatown 3,” a comedy adventure that was postponed from its Lunar New Year release last year, generated a large chunk of Imax’s ticket sales during the three-day period. The film grossed $ 23.5 million, the best result Imax said to have ever seen for a Chinese film. The action flick “A Writer’s Odyssey” and “New Gods: Nezha Reborn” also helped Imax achieve both gross attendance and gross sales.
Imax stock which comes out of the news rose more than 6% on Tuesday, its best day since November. The stock closed at $ 19.85 and is up more than 5% after hours.
Imax admitted more than one million people to movie theaters in China on Friday, its best one-day attendance on record. The results come despite capacity limitations that remain in place at entertainment establishments in China. The $ 25 million Imax reported at the box office was better than what it saw in the comparable opening week in 2019, which preceded the coronavirus pandemic.
Most cinemas in China have capacity limitations of 75%, while areas of the country with higher Covid-19 transmissions are limited to 50%. Restrictions on US theaters differ by state. The restrictions range from 25% capacity in Minnesota to 50% in Indiana to 100% in Alaska, according to data on file by the National Association of Theater Owners.
The seven-day Lunar New Year holiday ends on Wednesday. Theaters in China were closed around the same time last year as the country closed in response to the rapidly spreading virus that was first discovered in late 2019 in Wuhan City, Hubei Province.
The cinema rush has been fueled by the traditional travel season in China which has been largely suspended due to coronavirus restrictions. With the abandoned travel plans, millions of people have spent time at the movies.
Gelfond said Imax expected a strong turnout in China this weekend.
“I think the only thing you can say is that it’s pent-up demand, that people are just tired of sitting on their couches and, you know, watching the stream or whatever. ‘they did,’ he said. “I think they’re just happy to go out, and I think that foreshadows the rest of the world.”
Amid the pandemic, Imax’s business revenue fell 74% between 2020 and September compared to the first three quarters of the previous year. The company is expected to release its fourth quarter and full year 2020 performance next month.
Gelfond said in December that US film releases in 2021, including a list of films that carried over from initial releases last year, would present “an embarrassment of wealth” for Imax, if theaters nationwide opened early. of the year.
For the film industry as a whole, mainland China generated sales of 6.77 billion yuan, or $ 1.05 billion, for the holiday week on Tuesday, according to the online ticketing platform Maoyan Entertainment. This figure exceeds the record 5.9 billion yuan contributed during the same period in 2019.
Since theaters reopened in June, box office receipts have increased. Coronavirus cases have declined precipitously in countries such as China, Australia and South Korea, and movie ticket sales have increased.
Global sales of cinema tickets fell 70% in 2020 from the previous year. Ticket sales in Asia-Pacific accounted for around 51% of global sales, up from 41% in 2019, according to reports from Comscore and Gower Street. U.S. and Canadian box offices accounted for just 18% of sales in 2020, up from 30% in 2019.
– Reuters contributed to this report.
[ad_2]
Source link