Imax broke its ticketing records in China over the Lunar New Year weekend and the results predict what will happen when several US cinemas resume operations this summer, CEO Rich Gelfond told CNBC on Tuesday .
The company, which produces captivating film experiences, said it grossed $ 25 million between Friday and Sunday, a 45 percent increase from a pre-pandemic record.
“It simply came to our notice then [that] when it’s safe to go out and people want to go, they’ll run to go to the movies, “said Gelfond, who appeared on Closing Bell after the transaction ended on Wall Street Day.
“Detective Chinatown 3”, a comedy adventure that was postponed since the launch of the Lunar New Year last year, generated a large part of Imax’s ticket sales over the three days. The film grossed $ 23.5 million, the best results Imax has ever seen for a Chinese film. The action film “A Writer’s Odyssey” and “New Gods: Nezha Reborn” also helped Imax reach both gross attendance and gross sales highs.
Imax shares that came out of the news gathered more than 6% on Tuesday, the best day of November. Shares closed at $ 19.85 and rose more than 5% after hours.
Imax admitted more than 1 million people to Chinese cinemas on Friday, the best turnout in a day. The results come despite the capacity limitations that remain in place in China’s entertainment facilities. The $ 25 million Imax received at the box office was better than what it saw in the comparable opening week of 2019, which preceded the coronavirus pandemic.
Most theaters in China have 75% capacity limitations, while parts of the country that have higher transmissions than Covid-19 are limited to 50%. US theater restrictions vary by state. Restrictions range from 25% capacity in Minnesota to 50% in Indiana and 100% in Alaska, according to data held by the National Association of Theater Owners.
The seven-day Lunar New Year holiday ends on Wednesday. The theaters were closed in China this time last year, as the country was closed in response to the rapidly spreading virus that was first discovered in late 2019 in the city of Wuhan in Hubei Province.
The film’s rush was fueled by the traditional Chinese travel season, which was largely suspended due to coronavirus restrictions. With travel plans abandoned, millions have spent time watching movies.
Gelfond said Imax expected a strong turnout in China over the weekend.
“I think the only thing you can say is that it’s a retained request, that people are just tired of sitting on the couches and, you know, watching streaming or whatever,” he said. “I think they’re just happy to be out and I think they foreshadow the rest of the world.”
Amid the pandemic, Imax business revenues fell 74% in 2020 to September, from the first three quarters of the previous year. The company is expected to report performance in the fourth quarter and 2020 next month.
Gelfond said in December that US film releases in 2021, including a list of films that have been postponed since the initial releases last year, will present “embarrassing riches” for Imax, if theaters in the country opens at the beginning of the year.
For the film industry in general, mainland China generated sales of 6.77 billion yuan, or $ 1.05 billion, as of Tuesday for the holiday week, according to online ticketing platform Maoyan Entertainment. This figure exceeds the record 5.9 billion yuan brought in the same period in 2019.
Since the theaters reopened there in June, box office revenues have risen. Coronavirus cases have plummeted in countries such as China, Australia and South Korea, and film ticket sales have risen.
Global film ticket sales fell by 70% in 2020 compared to 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. American and Canadian box office accounted for only 18% of sales in 2020, down from 30% in 2019.
– Reuters contributed to the report.