We all know how the COVID-19 pandemic has hurt the movie business. All the theatres globally have been closed in a major part of the first half of the year and that has given the industry huge losses. IMAX China has recently shared that they faced a net loss of $34 – $36 million in the first half of 2020.
Interestingly, in the same period last year, IMAX Cinemas had gained profits of $24 million. But due to its 700 properties being shut down this year so far, it had to deal with heavy losses.
A Variety report has referred to a notice posted to the Hong Kong stock exchange which says that the 2020 decrease was primarily attributable to the shutdown and coronavirus slowing the installation of new theatre systems. It has also considered a non-recurring deferred income tax charge and provisions of around $9 million made for trade and financing receivables as other contributing factors towards the loss.
Earlier, China’s largest cinema chain Wanda Film reported that they are expecting losses of $214 – $228 million in the first half of the year compared to net profits of $75 million during the same period last year.
Meanwhile, despite the losses, the hope is still there and Wanda and IMAX have struck a 20-theatre agreement earlier this month. According to this deal, Wanda will upgrade ten of its existing theatres to the latest IMAX with Laser technology and install IMAX systems at ten others. With these upcoming systems, there will be 378 IMAX screens across China at Wanda venues. Now that’s a strong and hopeful step going forward.
What are your thoughts on this?