Imax China Expects Loss As Pandemic Shuts Theaters

Imax China, a subsidiary of the U.S theater network Imax, expects to lose between $34 million and $36 million in the first six months of 2020 in connection with the closure of its approximately 700 theaters in the country during the COVID-19 pandemic.

The figure includes a non-recurring tax charge and a provisional loss of $9 million for trade and financing receivables, Imax China said in a statement on Tuesday evening.  (See announcement here.) Imax China made $24 million a year earlier.

Movie theaters have been hit globally as film fans avoid enclosed spaces and large gatherings to avoid getting sick. Warner Bros. this week announced a delay in the release of Christopher Nolan’s new film, “Tenet.”

On a brighter note for Imax, China’s economy reversed to growth in the second quarter, and the country has greatly reduced COVID-19 cases, according to government announcements. In addition, Wanda Film, one of China’s largest entertainment businesses, Imax and Imax China on July 16 expanded their longstanding partnership under which Wanda will upgrade 20 theaters with new Imax technology.

Wanda Group, led by China billionaire Wang Jianlin, controls Wanda Film and the AMC theater chain in the United States.

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@rflannerychina