Street Calls of the Week
SYDNEY - IMAX Corporation (NYSE:IMAX), which has delivered strong returns over the past three months and is currently trading near its 52-week high according to InvestingPro data, announced a new agreement with HOYTS Cinemas to install up to five IMAX with Laser systems throughout Australia, rekindling a partnership that had been dormant since 2019.
The first location is scheduled to open in Melbourne later in 2025, ahead of the release of "Avatar: Fire and Ash," with four additional locations to be identified for future expansion, according to a press release statement. The expansion aligns with IMAX’s strong financial position, as InvestingPro analysis shows the company operates with moderate debt levels and maintains liquid assets exceeding short-term obligations.
"Every one of our cinemas has touch points that elevate them from a usual experience," said Damien Keogh, CEO and President of HOYTS Group. "The opportunity to see things on IMAX is really going to enhance HOYTS’ reputation as the premier destination for film experiences."
The expansion comes amid strong growth for IMAX in Australia, which currently ranks as the company’s tenth largest market globally despite having only four operational locations. Australia was IMAX’s top market by per-screen average last year, with nearly $4.5 million per screen.
IMAX’s Australian footprint is set to grow from just one location in 2022 to potentially 14 theaters in the coming years. The company’s share of the Australian box office has increased from 2.6% in 2024 to 4.4% in 2025 to date.
The new HOYTS locations will feature IMAX with Laser technology, which delivers 4K images and enhanced audio quality. HOYTS, which opened its first cinema in 1909, currently operates as the largest single-brand movie exhibitor in Australia and New Zealand with more than 500 screens across its network.
IMAX Corporation, headquartered in New York, Toronto, and Los Angeles, operated 1,810 systems across 89 countries and territories as of March 31, 2025. The company has maintained profitability over the last twelve months, with analysts projecting continued positive earnings this year. For deeper insights into IMAX’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which includes 13 additional key insights and detailed valuation analysis.
In other recent news, IMAX Corporation has reported significant developments that may interest investors. The company has expanded its credit facility to $375 million, with the option to increase it to $515 million, providing additional financial flexibility. In the film industry, IMAX reported a successful debut for "Superman," which generated $30.4 million globally in IMAX theaters during its opening weekend. Analyst firms have shown optimism toward IMAX’s performance, with Benchmark reiterating a Buy rating and maintaining a $30 price target, while B.Riley set a Buy rating with a $36 target.
IMAX’s Q2 box office performance reached $278 million, prompting Benchmark to adjust its model slightly. The company also announced a $100 million increase in its share repurchase program, extending it through June 2027, bringing the total authorization to $500 million. B.Riley analysts have raised their AEBITDA estimates for IMAX, citing strong domestic box office performance and system installations. Additionally, IMAX’s global system growth and premium cinema position are seen as key strengths by analysts. These recent developments highlight IMAX’s strategic financial and operational maneuvers in the current market landscape.
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