IMAX Shares Slip After Analysts Warn That Fanboys May Be Disappointed In 2014 Films

[:eek:]

By DAVID LIEBERMAN, Financial Editor | Wednesday October 2, 2013 @ 6:41pm
Today was at least the second day this week that an analyst has questioned the large-screen movie company’s growth prospects — and it contributed to a 4.4% drop in the stock price. http://www-deadline-com.vimg.net/wp...54733-200x105__130708183958__130815150931.jpgBenchmark Company analyst Mike Hickey, who initiated coverage of IMAX today with a “hold” recommendation, warns that domestic cinema growth in 2014 “could prove challenging” with a slate that will include IMAX versions of Fox’s Frankenstein; http://www-deadline-com.vimg.net/wp-content/uploads/2012/07/robocop_2013_movie__120711144704.jpgSony’s RoboCop; Warner Bros’ 300: Rise Of An Empire, Godzilla, and Edge Of Tomorrow; and Paramount’s Transformers: Age Of Extinction. On Monday Sterne Agee’s Vasily Karasyov raised a similar concern as he lowered his revenue and earnings projections. The per-screen average of IMAX box office sales this year could fall short of expectations, he says, with films that include an IMAX release likely accounting for 38% of the U.S. box office this year, down from 43% in 2012. The problem is that film franchises based on comic book characters “appear to be at or near the peak,” Karasyov says. Studios have already seized on the most popular characters and “the properties that are left unexploited at this point are unlikely to produce a break-out hit.” Hickey cited additional reasons for concern about IMAX. Ticketbuyers may tire of paying a premium price for the large screen venues — especially if the economy slows. That’s a real possibility in emerging countries including China where IMAX is vigorously building theaters. What’s more, “slowing international demand for 3D experiences could also prove disruptive…as many movie-goers associate IMAX with 3D.” Investors have high expectations for the company: Its stock price has appreciated nearly 43% over the last 12 months.

 

[I SEE SPIDEY]

I knew in North America that 3D would eventually be seen as the ticket increasing sham that it is. It's nice to be right about that, too bad it's dragging IMAX down with it. I kinda like IMAX.

 

[dude stannis]

Maybe they need to increase their 2D showings and decrease their 3D ones?

 

[Octoberist]

I agree too. My brother loves Imax but due to his vision, he can't tolerate 3D. Most of the IMAX showings of the movies he wanted to see, from Star Trek 2 to Man of Steel, had only 3D Imax screenings. I'm talking about the real Imax, not the fake ones.

So he would end up going to the normal 2D showings.

 

[RetrogradeOrbit]

I like 3D myself.
But I think that there should be equal showings of IMAX 2D alongside for those that don't like or can't tolerate 3D...

 

[jmc]

It cost me $23 AU (about $24.50 US) to see Gravity in 3D today.

 

[ThePowerCosmic]

Makes sense that you saw Gravity, because all that money just helplessly floated right up out of your wallet.

 

[Spider-Steve]

In Belgium i pay 9.80 euro (13.25 USD) for a 3D movie