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IMAX Expands Footprint in Saudi Arabia With Latest Partnership
IMAXIMAX(US:IMAX) ZACKSยท2024-07-17 15:07

Core Insights - IMAX Corporation has announced a strategic partnership with muvi Cinemas to expand its presence in Saudi Arabia, marking a significant development for both companies and the local cinema market [1][2] - The agreement includes the installation of four new IMAX with Laser systems in major cities, with plans for rapid rollout by the end of 2024 [1][2] - IMAX has identified potential for at least 50 locations in Saudi Arabia, building on its existing 10 locations and 22 more planned [2] Expansion Plans - The new IMAX locations will feature advanced IMAX with Laser technology, promising enhanced moviegoing experiences with superior image and audio quality [3] - The expansion is part of IMAX's broader strategy to solidify its market position amid competition from other premium large format providers [4] Market Performance - Saudi Arabia has become a key market for IMAX since 2019, consistently ranking among the top 20 countries for the company [2] - Recent box office successes, including "Oppenheimer," highlight the strong demand for both Hollywood and local content [2] Competitive Landscape - IMAX faces competition from providers like Dolby Cinema and CGV's 4DX, which offer unique features to enhance the viewing experience [4] - Despite this competition, IMAX maintains its edge through brand recognition and partnerships with filmmakers [4] Global Strategy - IMAX's global expansion includes partnerships in various countries, such as China, the Philippines, Turkey, India, and Thailand, focusing on upgrading to laser projection systems [5] - The company installed 152 new systems across 30 countries in 2023, emphasizing its commitment to technological advancement [5] Financial Outlook - The Zacks Consensus Estimate for IMAX's 2024 revenues is $375.59 million, reflecting a slight year-over-year increase [6] - The earnings per share estimate for 2024 is 90 cents, indicating a year-over-year decline [6] Future Goals - By expanding in high-growth markets and enhancing technology, IMAX aims to maintain its leadership in premium cinema offerings globally [7]