IMAX China witnessed a sharp slump in its yearly profit in 2016 on account of sluggish growth of Chinese box office, clearly reflecting the challenges that global cinema operators face in the world's second largest movie market.       

IMAX China Holding Inc's yearly profit in 2016 declined 13 percent to reach $37.6 million, while group's revenue registered a marginal growth of 7.2 percent to reach $118.5 million. These unflattering numbers clearly reflected the poor showing of IMAX box office in last year. By company's own estimation, the box office revenue at IMAX theatres slipped from $312 million in 2015 to $295 million in 2016.

Like Us on Facebook

Apart from poor box office numbers, the company in a statement cited the substantial increase in number of revenue sharing theatres as a major reason for its unimpressive result.      

At the end of 2016, IMAX overall operated 407 commercial screens across Greater China region, which is much higher than the 290 screens operating at the end of 2015. The company expects to add further 120 screens, out of which 85 screens would be revenue sharing, in the current financial year.  

Rich Gelfond, IMAX China chairman, while speaking at a conference call with financial analysts specifically blamed weaker content for poor financial results.

"A weaker slate leads to weaker ticket prices," he said, adding that content especially in second half of the year was especially weak.

The 2016 year may not be a very memorable for Chinese box office, but this is hardly stopping big American studios to release their movies this year. The Hollywood's first big release this year the xXx: Return of Xander Cage has already massive hit at the Chinese box office.

The Vin Diesel's action starrer has apparently earned more money at Chinese box office than at North American box office.         

TagsImax China, IMAX, china, Chinese Box Offie