IMAX to install 100 digital screens in theatre deal with AMC
08 December 2007
Giant-screen movie-system maker IMAX has concluded a deal to install 100 digital projection systems at AMC Entertainment multiplex theatres in the United States.
This JV is IMAX''s largest theatre deployment ever, and will double the Canadian company's presence in North America.
The first 50 digital projection systems will be unveiled at AMC theatres by July 2008, and the remaining over the following two years. Analysts believe the deal will generate about $13 million in cash flow for Imax in 2010, and more than $30 million a year after that, creating incremental earnings per share (EPS) of about $2.90.
AMC filed for an initial public offering (IPO) in September. The company operates 358 theatres with 5,128 screens over six countries.
The new theatres will open with IMAX''s highly anticipated digital projection technology, whose launch has been postponed to mid-2008. It will practically eliminate the need for film prints.