IMAX Inks Deal with Filmhouse Cinemas, Steps into Nigeria

IMAX Corp.  recently struck a deal with Nigeria's leading theater chain - Filmhouse Cinemas. Per the agreement, Filmhouse Cinemas will launch IMAX theaters in a new construction site in Lagos.

Importantly, this will be IMAX's first venture in Nigeria and also in West Africa. Lagos is a fast-developing city in Africa with a population of over 20 million. Moreover, Nigeria has one of the fastest growing economies in Africa with significant market potential. According to industry analysts, entertainment and media revenues in Nigeria is expected to increase over 100% by 2018 and reach a value of around $8.5 billion.

Thus, foraying into the leading African nation with its innovative IMAX DMR (Digital Re-mastering) technology will open up new avenues for the company. Notably, the DMR technology offers enhanced sound quality, high-definition video and customized theatre experience.

Imax CEO Richard Gelfond

As indicated by this deal, IMAX has been focusing on expanding its presence in Africa. Last year, the company had inked a theater partnership contract in Angola which marked its first deal in the country. Moreover, the company fortified its presence in South Africa through the launch of four new theaters.

Of late, IMAX has also been increasing its focus on the Chinese market. The tremendous potential of the country's movie market is highlighted by the fact that China's box-office revenues surged approximately 36% year over year to $4.77 billion in 2014. Riding on the growth potential, the Chinese division of IMAX generated profits of $22.6 million in 2014, up 29% year over year. IMAX also recently announced its decision to raise nearly $300 million through an initial public offering (IPO) in Hong Kong by the third quarter of 2015.