The large-screen theater company says it generated $8.39M in net income for 3Q, up 24.6% vs the period last year, on revenues of $67.5M, up 32.2%. That translated into adjusted earnings of 16 cents a share, light of the 20 cents that the Street expected. But IMAX says it took a 6 cent hit due to “a sudden decrease of the Canadian Dollar against the U.S. Dollar at the end of the third quarter.” Most of IMAX’s revenues are in U.S. dollars, but most of its expenses are in Canadian dollars. Since the end of September the Canadian dollar has strengthened, leading IMAX to project a $3.4M gain in 4Q. CEO Rich Gelfond says he’s optimistic about upcoming films led by Paramount’s Mission: Impossible — Ghost Protocol: The IMAX Experience as well as revenues from new theaters being built overseas. Gelfond says that 3Q was the first time that IMAX saw more gross revenues from overseas theaters than from domestic. The company increased its international growth plans by 25% and says those markets will account for about 75% of the new IMAX venues planned for the next 15 months.


Blame Canada!
Blaming a weak exchange rate is a relatively lame excuse. Sort of like the Deadline article about the studio insider worried about the “soft weekend box office”.
IT IS ABOUT THE CONTENT, YOU MORONS. Audiences are turning away from endless reboots, reimaginings, and gimmicky 3D. Does seeing a crappy movie in an IMAX theater make it any better? (answer: NO!) Asking audiences to pay a premium to see an average to crappy movie in 3D or IMAX results in lower revenues, not just the exchange rate. Just look at the “spectacular” performance of the recent 3D THREE MUSKETEERS if you need eveidence of how the studio formula is not working.
Theater owners should be DEMANDING better content from the studios. Otherwise, we will continue to get questionable content like the upcoming 3D version of THE GREAT GATSBY.
Hollywood is going through the same delusion that hurt Detroit for decades. You can’t put crap on the showroom floor, then bitch and moan why nobody is buying what you are selling.
There have always been bad movies, and there will always be bad movies. Having sad that, it seems we are overrun with really bad movies in the past couple of years.
Carthy is absolutely correct about the Detroit analogy. No one wants to spend money on an averge or crap film that they can stream or get on premium cable/satellite in a few months for much less. (“Tower Heist” is trying VOD before theatrical release, but I’m not sure it warrants the asking price.)
Bad movies equal low revenues. Without the last Harry Potter movie, 2011 would have been a really bad year. There’s still the holiday blockbuster season, but it will have to be spectacular to make up for the rest of the underperforming year (underperforming when Harry Potter is taken out of the calculation).
Don’t want to be a Canadian Idiot
Won’t figure out their temperature in Celsius
See the map, they’re hoverin’ right over us
Tell you the truth, it makes me kinda nervous
Break their nose and they’ll just say “sorry”
Tell me what kind of freaks are that polite?
It’s gotta mean they’re all up to somethin’
So quick, before they see it comin’
Time for a pre-emptive strike!
Not Canada that’s the problem. The problem is generally poor-to-bad movie content. Better movies is the only way to improve IMAX revenue.