Imax Creates Internal ‘Avatar’ Task Force To Capitalize On Dec. Release; Takes $7M Provision For “Uncertainty” In Russia
deadline.comBig-screen pioneer Imax said it recorded a net non-cash provision of $6.9 million, or $0.12 per share, due to an increase in reserves given the uncertainty of collecting receivables in Russia.
With the Russia-Ukraine war ongoing, sanctions and boycotts underway include all major studios pulling releases from Russia.“This provision was taken in an exercise of caution due to the ongoing conflict in Ukraine and covers substantially all of the company’s net receivable exposure in the Russian market,” the company said in it’s first-quarter earnings report.
Over the past five years, Russia has represented about 3% on average of Imax’s annual global box office. The provision squeezed earnings.
Net losses of $13.6 million narrowed from $14.8 million the year before but would have been considerably less.Revenue surged 55% to $60 million from about $39 million primarily from The Batman, Spider-Man: No Way Home and local language title The Battle at Lake Changjin II over the Chinese New Year.
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