IMAX Corporation (NYSE:IMAX), IMAX China Holding Inc. (HKSE: 1970) and Jiangsu Omnijoi Cinema Development Co., Ltd. today announced an expansion of the parties’ hybrid revenue-sharing arrangement with the addition of 40 new IMAX® theatre systems to be located in new multiplexes across Tier One to Tier Four cities in China.
The Companies expect the majority of the sites to open by the end of 2020 with the remaining sites to open by the end of 2021. This agreement brings Omnijoi Cinemas’ total IMAX commitment to 72 theatres and positions Omnijoi as the third-largest IMAX exhibitor partner in Asia Pacific and fifth-largest globally. Jiangsu Omnijoi Cinema Development Co. Ltd is a subsidiary of Omnijoi Film Television Culture Group Co. Ltd., one of the leading state-owned enterprises in the film and exhibition industry in China (SZ:300528) (Omnijoi Cinemas).
“As one of the fastest-growing cinema developers in China, Omnijoi Cinemas is determined to deliver moviegoers premier entertainment experiences and we are delighted to expand our partnership at such a significant level,” said IMAX CEO Richard L. Gelfond. “Today’s agreement not only brings our year-to-date signings in China to 72 theatres, but adds to our growing number of joint revenue-sharing arrangements in China, which allows us to share in recurring box office revenue. We believe our accelerated network expansion, coupled with the strong 2017 film slate ahead, will support our continued growth in our largest market thanks to relationships with valued partners such as Omnijoi Cinemas.”
Omnijoi Cinemas opened its first IMAX theatre in Suzhou in 2011 and currently has 16 in operation and 56 slated to open, including today’s agreement.
“IMAX is widely regarded in China as a premium brand sought after by consumers and viewed by real estate developers as an important entertainment anchor. As we expand our cinema circuit across China, IMAX has helped us secure sites in our most desired locations,” said Mr. Huang Bin, Deputy General Manager of Omnijoi Film Television Culture Group Co. Ltd. and General Manager of Jiangsu Omnijoi Cinema Development Co., Ltd. “We’ve enjoyed tremendous success with our existing IMAX theatres and we hope to replicate this success with today’s agreement. We are particularly excited about the upcoming IMAX film slate with its many blockbuster titles that our patrons will want to experience in IMAX’s differentiated format.”
Since establishing IMAX China as a wholly owned entity in 2011, the Company’s presence in the market has grown to more than 400 theatres from approximately 70. In 2016, IMAX China signed more new theatre agreements than in the previous two years combined.