Imax broke its box office records in China during the Lunar New Year holiday weekend and the results predict what will happen when more U.S. cinemas resume operations this summer, CEO Rich Gelfond told CNBC on Tuesday.
The company, which produces immersive cinematic experiences, said it raised $ 25 million between Friday and Sunday, a 45% increase from a pre-pandemic record.
“That tells you [that] when it’s safe to leave the house and people want to go, they’ll rush to the movies, “said Gelfond, who appeared on” Closing Bell “after the day’s negotiations ended on Wall Street.
“Detective Chinatown 3”, an adventure comedy that was delayed on its release in the Lunar New Year last year, generated a large share of Imax ticket sales over the three-day period. The film earned $ 23.5 million, the best result Imax said he had ever seen for a Chinese film. The action film “The Writer’s Odyssey” and the animation “New Gods: Nezha Reborn” also helped Imax reach the raw audience and peak sales.
Imax shares that made the news rose more than 6% on Tuesday, its best day since November. The stock closed at $ 19.85 and rose more than 5% after hours.
Imax admitted more than 1 million people to cinemas in China on Friday, its best one-day attendance ever recorded. The results come despite the capacity limitations that remain in effect at entertainment establishments in China. The $ 25 million Imax collected at the box office was better than what it saw during the comparable opening week in 2019, which preceded the coronavirus pandemic.
Most cinemas in China have 75% capacity limitations, while parts of the country with the highest Covid-19 broadcasts are limited to 50%. US theater restrictions vary by state. The restrictions range from 25% of capacity in Minnesota to 50% in Indiana and 100% in Alaska, according to data maintained by the National Association of Theater Owners.
The seven-day Lunar New Year holiday ends on Wednesday. Cinemas were closed in China last year, while the country closed in response to the rapidly spreading virus and was first discovered in late 2019 in the city of Wuhan in Hubei province.
The wave of films was fueled by the traditional travel season in China, largely suspended due to coronavirus restrictions. With travel plans canceled, millions spent time in the cinema.
Gelfond said that Imax expected a strong participation in China over the weekend.
“I think the only thing you can say is that it is a pent-up demand, that people just get tired of sitting on their sofas and, you know, watching streaming or whatever they do,” he said. “I think they are happy to be out, and I think that foreshadows the rest of the world.”
In the midst of the pandemic, Imax’s business revenues plummeted 74% in 2020 through 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 2,021 movie releases in the United States, including a list of films that were postponed last year, would represent “a shame on wealth” for Imax if cinemas in the country were opened earlier this year.
For the film industry in general, mainland China generated sales of 6.77 billion yuan, or $ 1.05 billion, on Tuesday for the holiday week, according to the online boxing platform Maoyan Entertainment. That figure exceeds the record 5.9 billion yuan during the same period in 2019.
Since the reopening of cinemas in June, box office revenues have increased. Coronavirus cases have skyrocketed in countries like China, Australia and South Korea, and sales of movie tickets have increased.
Global movie ticket sales plunged 70% in 2020 compared to the previous year. Ticket sales from Asia Pacific accounted for about 51% of global sales, up from 41% in 2019, based on information from Comscore and Gower Street. Box office in the U.S. and Canada accounted for just 18% of sales in 2020, up from 30% in 2019.
– Reuters contributed to this report.