IMAX Corporation (USA) (NYSE:IMAX) CEO Richard Gelfond said in a recent interview on CNBC that they are seeing good growth in emerging markets and in China.
The IMAX Corporation (USA) (NYSE:IMAX) chief was asked first about how the company is reacting and adapting to the globalization of demand for entertainment content, particularly in Asia, which is a market that they serve. According to Gelfond, the company is fortunate to be ahead of the curve when it comes to China.
“Well in China in particular, we were fortunate enough to be way ahead of the curve. We have 168 theaters open in China already and [when]backlog is set to build, our network will be over 400 theaters. When we are involved in a film in China, whether it is an American blockbuster or a Chinese film, we typically do 10-15% of the box office. China has been just a giant wave of demand as the economy has progressed and discretionary income has gone up. That’s just a huge, new movie-going population,” he said.
However, the IMAX Corporation (USA) (NYSE:IMAX) CEO also said that this growth can also be seen in other emerging markets.
“We do see it [in the more broad emerging market]– even [in]Russia and even the Ukraine, believe it or not – so much so across Asia. You look at the Philippines, Malaysia, Indonesia [and you see it]. [At] IMAX, revenues used to be much more North American-based. In the last quarter, it was 57% international and you really see that growth in the emerging markets,” he explained.
The IMAX Corporation (USA) (NYSE:IMAX) boss was then asked about the potential slump in terms of box office revenue for the current year. According to Gelfond, this year may have been slow to start but it is still not yet over.
Furthermore, IMAX Corporation (USA) (NYSE:IMAX) sees great potential for the next couple of years because of pending block busters, he said.