(Photo : Imax Logo)

IMAX Corp, a Canadian big-screen cinema company, expressed confidence that its annual box office revenue will reach $1 billion in the next few years as it expands in China.

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The company will put up IMAX theaters in 1,700 target markets and aims to operate 400 theaters in China, said IMAX Chief Executive Officer Richard Gelfond.

Gelfond said 90 theaters were initially planned for China but the demand continues to rise and IMAX now has a backlog of close to 400.

IMAX Operates 126 Theaters in China

As of end of June, IMAX has 126 theaters in operation in China, accounting for 15 per cent of the company's first-half revenue.

IMAX considers China first and foremost on its investment radar because of the still underpenetrated market when it comes to cinemas and distribution.

The Ontario-based company will also expand in Russia and the Middle East. And with China as part of its global expansion, IMAX said it could reach $1 billion in annual box office receipts.

In 2012, the global box office receipts of IMAX reached $620.6 million, or more than $200 million compared with the box office receipts in 2011. As of June of this year, IMAX operates 765 theaters in 54 countries around the world.

IMAX-Wanda Deal

Last July, IMAX signed a deal with China's Wanda Cinema Line Corp to put up as many as 120 new big-screen movie houses in China together, which will bring the total number of IMAX theaters, both operational and still being planned, in China to 381.

Under the agreement Wanda will operate 210 of the IMAX theaters in China and will invest about $500,000 a screen. IMAX will also take about 20 per cent of the gross box office in China, said Gelfond.

The Wanda deal is the latest move of IMAX to target Asian consumers who now look for bigger, more immersive screens when watching Hollywood blockbusters.