Credit Crunch has hit cinema giant IMAX

Imax, the Canadian company we know for the giant-screen movie theatre systems reported a second quarter loss. The company said that this is mainly due to the investments it has made in the new digital technology.

Three AMC Entertainment theaters had digital projection systems delivered and installed by Imax based in Ontario. The systems were to be installed in the Ikast Quarter but this didn’t happen.

The company lost $12.2 million which is 29 cents on a share, in the period ending the 30th June, for the same period last year the loss was at $4.5 million down 11 cents a share.

Imax reported revenue decreased from $27.1 million down to $21.2 million.

As the credit crunch effects us all, people just can’t afford to go to the cinema regularly anymore, they have to miss out on the 3D experience in a bid to look after their finances.

Imax hinted that as lot of their success was down to the Spiderman 3 last year, which made a huge impact on its Q2 2007 figures, with last year’s figures looking so good it in turn has made this year’s figures look low.

But with the release of “The Dark Knight” the new Batman film they are hoping this will push the revenue up this quarter.

Imax said that they will still be looking to install around 50 digital systems by the end of 2008 and they are on track to do so.

Source: pocket-lint.co.uk