NEW YORK and RIYADH, Saudi Arabia - IMAX Corporation (NYSE: NYSE:IMAX) and muvi Cinemas, Saudi Arabia's leading cinema operator, have entered into a partnership to establish four new IMAX with Laser systems in the country. This collaboration marks the first of its kind between the two entities, expanding the immersive cinematic experience within Saudi Arabia.
Two of the new IMAX systems will be installed in Riyadh, the nation's capital, with another set for Jeddah's Mall of Arabia, and one in Dhahran, which will host its very first IMAX location. Audiences can expect three of these cutting-edge venues to open by the end of 2024, and one more to follow in 2025.
Adon Quinn, CEO of muvi Cinemas, expressed enthusiasm for the partnership, emphasizing the company's aim to offer superior cinematic experiences and to maintain its market leadership. The introduction of IMAX with Laser aligns with muvi's commitment to providing high-quality, world-class entertainment to its customers.
Rich Gelfond, CEO of IMAX, noted the significant growth of the IMAX brand in Saudi Arabia since its commercial debut in 2019. He highlighted the strong demand from the local audience for diverse content, including Hollywood blockbusters and international films. The partnership with muvi Cinemas is seen as a strategic move to cater to this demand.
Saudi Arabia has become a key market for IMAX, consistently ranking among the top 20 countries for the company. The recent release of "Oppenheimer" set a new record as the highest-grossing IMAX title in Saudi Arabia, with "Bad Boys: Ride or Die" also achieving notable success.
IMAX with Laser technology promises a superior moviegoing experience, featuring 4k laser projection with a new optical engine and custom-designed lenses. These advancements are expected to deliver brighter images, increased resolution, deeper contrast, and a broader color spectrum exclusive to IMAX screens.
The partnership between IMAX and muvi Cinemas is set to strengthen IMAX's presence in Saudi Arabia, which currently includes 10 open locations and an additional 22 planned, as part of its expansion strategy to establish at least 50 venues in the country.
This new venture is based on a press release statement and reflects the ongoing growth and investment in the entertainment sector within Saudi Arabia.
In other recent news, IMAX Corporation and SM Cinema, the premier movie exhibition company in the Philippines, have significantly expanded their partnership. This expansion includes the installation of 10 advanced IMAX with Laser systems across SM Cinema's network, set to enhance the moviegoing experience for Filipino audiences.
The deal will introduce The IMAX Experience to three new locations and upgrade seven existing IMAX systems to the latest laser technology. This year, three of the new and upgraded locations are scheduled to open, with the remainder expected to be operational by the end of 2026.
The partnership between IMAX and SM Cinema, dating back to 2006, continues to thrive, with the Philippines ranking among the top 30 highest-grossing IMAX markets worldwide since 2022. IMAX with Laser, the company's most advanced theater technology, offers a 4K laser projection system designed to deliver sharper images, precision audio, and a wider color spectrum.
InvestingPro Insights
Amid the expansion of IMAX's footprint in Saudi Arabia, the company's financial health and market performance are critical factors for investors. According to real-time data from InvestingPro, IMAX Corporation currently holds a market capitalization of 904.39 million USD, with a Price/Earnings (P/E) ratio standing at 35.51. This could indicate a premium valuation, as the company is trading at a high earnings multiple. Nevertheless, the P/E ratio has seen a slight adjustment from the last twelve months as of Q1 2024, coming in at 33.38.
InvestingPro Tips suggest that while analysts have recently revised their earnings expectations downwards for the upcoming period, the company is still anticipated to be profitable this year. Additionally, IMAX operates with a moderate level of debt and its liquid assets exceed short-term obligations, which may provide a cushion against market uncertainties.
The financial stability and profitability of IMAX, particularly over the last twelve months, are promising signs for the company as it embarks on this new venture with muvi Cinemas. With a total of 7 tips available on InvestingPro, investors can delve deeper into the company's prospects and performance metrics. For those looking to explore these insights further, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at https://www.investing.com/pro/IMAX.
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