US COVID-19 Higher Than Globally, Says Imax CEO; Stock Down

Imax plans to have 1,400 screens in 70 markets open by August for Christopher Nolan’s blockbuster Tenet, said CEO Rich Gelfond Tuesday on a Q2 call. After three delays due to COVID-19, Warner Bros. said also Tuesday the movie will release in Canada, Europe and Asia Aug. 26 and in limited U.S. theaters Sept. 3. “The rising infection rate in the U.S. and other markets stands in stark contrast to the opening of large international markets, where we derive over 70% of our revenue,” said Gelfond: “The U.S. presents a unique challenge for industry that is accustomed to global releases.” Staggered releases by country are “the next best thing,” he said. “We should expect some temporary setbacks in some markets.” In July, some 624 Imax screens were open, 40% of the company’s global 1,500-theater network; 10% of North America’s 400 Imax theaters are open, primarily in Canada. Masks are “absolutely critical” in theaters, said Gelfond. Social distancing capacity constraints and traffic flow can be managed effectively, show times can be staggered and food prep can be visible or food can be prepackaged, he said. Gelfond predicts the market will move toward premium experiences and blockbusters. On Imax's concern about narrowing theatrical windows -- after AMC's and Universal’s announcement Tuesday giving AMC 17 days of theatrical exclusivity for releases before going to premium VOD -- Gelfond said he sees little impact. With AMC potentially sharing in streaming revenue, “we have to wait to hear what other exhibitors say, what that means,” said Gelfond. Noting Universal doesn’t have a big movie coming out in North America until 2021, “we all have to take a breath,” said the executive. Imax revenue plunged 92% year on year in Q2 to $8.9 million. Shares closed down 10.7% Wednesday at $11.22.