Imax shares closed above $50 for the first time in company history on Monday, an all-time high built on a third straight $50 million-plus box office weekend for Christopher Nolan's "The Odyssey." CEO Rich Gelfond said the rally reflects more than ticket sales, pointing to theater expansion and rising cash flow, while sale talk from earlier this year remains on the table.
Odyssey box office lifts Imax to a record
Imax shares jumped 6.61% on Monday, closing above $50 for the first time in the company's history. The move marked a fresh all-time high for the entertainment technology company. The rally came after "The Odyssey" delivered its third straight weekend of more than $50 million in global ticket sales.
CEO Rich Gelfond credited Christopher Nolan directly for the momentum, noting this is the eighth film the two have worked on together. "The Odyssey" has generated $221 million in global box office for Imax, nearly 25% of the film's total worldwide tally. Sold-out 70 mm screenings, already extended through mid-September, are drawing crowds abroad too — Gelfond said tourism officials in Montpellier, France, reported a 30% rise in metro ridership since the film opened.
Gelfond points to fundamentals beyond the box office
Gelfond said the momentum extends past ticket sales. Imax is opening and installing more theaters while recurring cash flow and its cash conversion rate both rise, he said, calling the dynamic "a flywheel." As a result, the stock is up 38% year to date, on pace for its fourth straight annual gain, and has climbed 100% over the past 12 months.
Sale talk resurfaces as new releases loom
Imax held preliminary talks with potential buyers earlier this year, and Gelfond again left the door open to a sale on Monday. This weekend, Imax begins showing Sony and Marvel's "Spider-Man: Brand New Day," a release previously held back by an exclusivity deal tied to "The Odyssey." Later this year, Imax screens are due to add "Resident Evil," Tom Cruise's "Digger," "Godzilla Minus Zero," "The Adventures of Cliff Booth" and "Street Fighter," before Denis Villeneuve's "Dune: Part Three" closes out the year.
Source: CNBC
Trading involves risk.
Risk Disclaimer
