On the heels of Imax's (Nasdaq:IMAX) (TSX:IMX) entrance into Kazakhstan and expansion in China last week, the company is no doubt expanding its presence globally. On Thursday, Imax and Karo Film Management, the exhibitor that began the multiplex concept in Russia, announced an agreement that will see Karo install up to three Imax theatre systems in the country.
Under the terms of the sale agreement, Karo will install a digital Imax theatre system in Moscow in January of 2011, followed by an Imax theatre in St. Petersburg in April next year. The company also has the option to install a third system at a later date in either city.
The deal brings the total number of Imax theatres scheduled to be operating in Russia and The Commonwealth of Independent States (CIS), the company's third largest market behind the US and China, to 32 by 2012.
"We are very impressed with the performance of IMAX theatres in Russia and have watched the IMAX brand grow in popularity among consumers," said CEO of Karo Igor Ilchuk.
Imax said there are more opportunities for its business in regional markets in Russia, and it will continue to grow its presence.
"Karo's well-known brand is ideal for the growth of our own brand in the region, and we're very excited to open these initial locations with them," said Imax executive vice president Larry T. O'Reilly.
Last week, Imax announced its single largest theatre deal in Asia, signing an agreement with CJ CGV to install 15 digital Imax theatre systems in new locations in China.
The company also said a few days earlier that it planned to partner with Kazakhstan theater operator Kinopark and open three of its jumbo theaters in the Central Asian country, which will be the company's first venture in the region.
Imax's number of theatre systems signings year-to-date has increased to 174 worldwide, which compares to 35 system signings in all of 2009. As of June 30, 2010, there were 447 Imax theatres operating in 47 countries.
The business' digital projection system eliminates the need for film prints, increasing program flexibility and ultimately increasing the number of movies shown on Imax screens.
Karo Film opened Russia's first multiplex in 2001. Since then, the company has remained the largest motion picture exhibition company in Russia. It currently operates 32 modern multiplexes, with 169 screens and 1.5 million moviegoers passing through its doors every month.