As movie-theater operator Cinemark (CNK -3.38%) exits the Mexican market, another "gringo" is expanding to fill the gap -- from even farther north of the border.
On Monday, Mississauga, Ontario-based IMAX (IMAX -2.32%) announced that it has signed an agreement to install five IMAX theatres at existing Mexican multiplexes operated by Cinepolis. The agreement, once implemented, will give IMAX a total of 12 Cinepolis locations in Mexico, in addition to the one now operating in Brazil.
IMAX CEO Richard L. Gelfond explained the move thusly: "Mexico is a leading movie-going market we've only begun to penetrate, and today's agreement proves our momentum is building in Latin America-a key area of focus for IMAX." Through Cinepolis, IMAX says it now has locations in all four of Mexico's highest-grossing movie complexes.
Regardless, IMAX shares followed the rest of the market down today, dropping 1.4% to close at $27.17.
