IMAX Corporation (NYSE: IMAX; TSX: IMX) and TGV Cinemas Sdn Bhd (TGV Cinemas), one of Malaysia's premier film exhibition companies, today announced an expansion of the parties' joint revenue sharing agreement announced in October 2011 to include the installation of seven additional IMAX® theatre systems.
Today's deal brings to eight the exhibitor's total IMAX commitment and brings to 321 the total number of IMAX theatres open or contracted to open in the Asia Pacific region.
Under the terms of the new agreement, the first IMAX theatre is scheduled to open in a new construction project in the city of Bandar Utama in the fall, with the second theatre opening in December 2012 in an existing multiplex in Johor Bahru. The third and fourth IMAX theatre systems will also be located in new construction projects in the cities of Penang and Kuala Lumpur, which are slated to open in December 2013 and December 2015, respectively. Locations for the remaining three theatres will be determined by the parties at a later date.
"IMAX's immersive experience makes our guests feel like they're a part of the blockbusters - something no other cinematic format or in-home entertainment option can replicate," said Kenny Wong, CEO of TGV Cinemas. "Our first IMAX theatre has been a tremendous success and we are keen to build on this momentum with today's agreement. We're confident that our new IMAX theatres will continue to strengthen our business and delight our guests."
"With a large population and growing middle-class fueling consumer demand for entertainment options, Malaysia is a key area of growth for IMAX in the Asia Pacific region," said IMAX CEO Richard L. Gelfond. "It is great to see TGV already realizing value from its first IMAX theatre in such a short period of time and together we look forward to bringing our unparalleled movie-going experience to more audiences throughout Malaysia." "We are pleased to expand our relationship with TGV - a strategic partner that is committed to delivering the best cinematic experiences and developing IMAX as a premium brand in Malaysia," said Don Savant, Senior Vice President and Managing Director, Asia Pacific. "With today's agreement, TGV will bring IMAX theatres into high-growth areas further supporting our expansion efforts in this key part of Asia."