IMAX Gains 3% After Company Announces Expansion To France And Switzerland

Shares of IMAX Corporation (NYSE: IMAX) were trading higher by around 3 percent on Monday after the company announced a new five-year agreement with Les Cinemas Gaumont Pathe, the largest cinema chain operator in France, the Netherlands and Switzerland.

As part of the agreement, certain cinemas in France will be equipped with IMAX's screens and IMAX digital theatre systems will be constructed in new theaters in Switzerland. Following the completion of the agreement, IMAX will count seven theatres in France, six in the Netherlands and four in Switzerland that will showcase IMAX's technology.

"It is clear that the appetite for IMAX is growing in France and Switzerland," said Andrew Cripps, President, IMAX EMEA. "In France, our box office is up by more than 20 percent from last year and the first commercial multiplex theatre in Switzerland, Pathé's IMAX site in Geneva, has grossed approximately $1.9 million in its first year of operation. In fact, Pathé has the highest IMAX per screen average in EMEA. As we continue to execute against our European expansion strategy, we are pleased to build on existing partnerships with Europe's exhibition leaders such as Pathé."

"The performance of our IMAX sites in France has been convincing and today's agreement is a direct result of this and the success of our entire IMAX network, which we hope to replicate in our new state-of-the-art, custom-built IMAX theatres," said Martine Odillard, Chairman of Les Cinémas Gaumont Pathé. "We are particularly excited about our new flagship complex in La Valette-du-Var where IMAX's next-generation laser and sound technology will serve as the anchor attraction."