Omar Mejias

Omar Mejias inquired about the current state of the Chinese box office, including the early performance of Chinese New Year releases like Pegasus 3, and the overall market health and future slate.

Answer

CEO Richard Gelfond clarified that the Chinese New Year period featured a 'B slate' due to several anticipated titles shifting to summer, attributing modest results to timing rather than underlying market trends. He expects the summer period to be stronger as a result. Regarding local language and alternative content, Mr. Gelfond stated IMAX focuses on programming the best content for each market, noting flexibility in scheduling and believing there is ample runway for more international and local language films.

Omar Mejias asked for an update on the state of the Chinese box office, including the early start to the Chinese New Year, the performance of Pegasus 3, and the overall health and slate ahead for the market. He also inquired about the runway for local language and alternative content box office growth, given the record year in 2025 and new deals like Apple's F1, and if there's a limit to non-Hollywood content expansion.

Answer

Richard Gelfond, CEO of IMAX Corporation, explained that the Chinese New Year results were more a matter of timing due to titles slipping to summer, rather than a trend in market health. Regarding local language and alternative content, Mr. Gelfond stated that IMAX aims to program the best content for each market without a specific limit, noting that scheduling flexibility allows for more international films and that this segment will continue to be an important part of the business.

Omar Mejias of Wells Fargo inquired about the future of the "Film for IMAX" program, asking if all films might eventually receive this designation, and questioned the competitive threat from US theater chains reportedly considering a joint marketing effort for their own premium large format (PLF) screens.

Answer

CEO Richard Gelfond clarified that the "Film for IMAX" designation will remain selective to preserve its special status, noting nine such titles are already slated for 2026. He dismissed the PLF threat as a "pathetic attempt," emphasizing IMAX's superior brand, technology, and filmmaker relationships, and mentioned that key exhibitors denied involvement in any such consortium.

Omar Mejias asked about the drivers behind Cinemark's market share gains and how the company plans to manage its footprint with a busier film slate in 2026. He also inquired about Cinemark's strategy for alternative content and other opportunities within this vertical.

Answer

Sean Gamble, President and CEO, attributed market share gains to various initiatives including showtime programming, marketing, pricing, and loyalty programs. He noted 2025 benefited from a strong mix of family and horror films and a balanced release cadence. For 2026, he cautioned that a more crowded summer and year-end could lead to capacity constraints, potentially normalizing market share. Regarding alternative content, Mr. Gamble highlighted its significant growth, with pure proceeds in 2025 more than double 2019 levels. A dedicated team focuses on identifying and optimizing programming for faith-based films, anime, foreign films, concerts, and repertory content, with optimism for continued growth.

Omar Mejias inquired about how Cinemark has achieved its market share outperformance, how it plans to manage its footprint with a busier 2026 slate, and the company's success and future opportunities in alternative content.

Answer

Sean Gamble, President and CEO, attributed market share gains to varied initiatives including showtime programming, marketing, pricing, and loyalty programs, benefiting in 2025 from a high concentration of family and horror films and a balanced release cadence. He noted that 2026's more crowded summer and year-end slate could lead to capacity constraints and a normalization of market share. He highlighted that alternative programming has consistently exceeded 10% of box office for multiple years, with pure proceeds more than double 2019 levels, driven by a dedicated team pursuing diverse content like faith-based films, anime, and concerts.

Omar Mejias asked for an updated view on M&A opportunities for footprint expansion, including potential interest in major urban markets. He also requested a quantification of the deferred maintenance expense impact in Q2 and its expected cadence for the rest of the year.

Answer

CEO Sean Gamble confirmed that M&A remains a potential growth channel, with a preference for deepening penetration in existing markets but an openness to other opportunities if the returns are accretive and financially disciplined. CFO Melissa Thomas quantified the Q2 deferred maintenance impact at approximately $4 million, with the remaining half of the year's total expected in H2, weighted more heavily in Q3.