Natasha Fernandes: Hi, David. So as we looked at the quarter, we actually had a really good mix of a local language and Hollywood content in the quarter. It was our best ever summer local language quarter for China. And so the take rate in China, runs higher versus Hollywood content in China. And so as we pushed local language for China between Creation of the Gods Part 1, No More Bets and a couple of other titles, it definitely helped us. And we also ended the quarter with the beginning of the October holiday on the very last days. And so that led a lot of the take rate wins as well. The other component of that is Oppenheimer, Oppenheimer’s take rate worked better for us in our film locations, just based on the specific arrangements that we had for that film. And so, that also optimized our take rate in the quarter.
Richard Gelfond : So David, in terms of discussions we’ve had about adding theaters within zones with exhibitors, I’d say they continued during the quarter. There’s nothing that we announced, but there haven’t been any setbacks. We’ve just continued those discussions and I expect there to be some results from that, but just not today. On what — how much of a barrier are the exclusive zones to growth in the markets? So I think that on a regular basis, we review what our total addressable market is and that changes, and our analysis is for the next three years. So giving you historical perspective in China, our original estimate was for 90 theaters. And now I think our estimate is about 1,200 or something like that. And we have 800 open and over 200 in backlog.
So that becomes a moving target. Obviously, the number of zones that are closed down because there’s exclusivity, influences what that addressable market is. But I’d like to give you a few interesting examples. North America which is one of our most heavily penetrated markets, there’s still a lot of zones open and something like 25% of our signings before this quarter were in North America this year. So there’s still a lot of room to go and a lot of growth. And occasionally for various reasons, someone will give up an IMAX theater. And it just so happens that recently in two zones people shut down a multiplex. They didn’t shut down an IMAX theater, but they shut down a multiplex for whether it’s real estate or whatever the reason is. And within weeks, we resold those zones to another exhibitor, because the exclusivity had gone away.
So it does influence it, but it also protects us in many ways, because we’ve demonstrated the viability of the box office in that zone. And if for whatever reason something happens, we have a very good proof point to resell that zone.
Operator: Thank you. And our next question coming from the line of Chad Beynon with Macquarie.
Chad Beynon : Given the IMAX China situation, Natasha, does anything change in terms of how you’re thinking about capital allocation, buybacks or M&A given where the balance sheet is and maybe some cash that’s ready to be used? Thank you.
Natasha Fernandes : Hi, Chad. Well, the China transaction, we are continuing to operate business as is. I think, we just had the deals signed that we announced, 20 system deal with Hengdian and we think that the market has returned. We’ve been doing well in China. We had our best ever Q1, we’ve had our best summer local language title. And so, as we look at China, we will continue to operate it as is. But from a capital allocation perspective, at the consolidated level, that will continue as well. We’ve done share repurchases already. We did 2 million in the quarter and then after the quarter subsequently, we’ve already done a little over 4 million. And so, as we think about capital allocation, that’s our continued strategy that if we see that we’re undervalued, we’ll be opportunistic about it, and with the cash on hand that we have.
