Everyman boss is confident Brits will still flock to cinemas during cost of living crisis as group cuts losses and sees admissions rise
- Everyman saw admissions increase in first half with sales up
- The cinema group reduced its pre-tax loss to £798,000
- Boss confident Brits will visit cinemas during cost of living crisis
Everyman Media Group reported a reduction in its interim losses in its first-half results as it hailed “healthy” customer numbers and said it expects to “at least meet” market expectations for the whole year and beyond.
The premium cinema group’s pre-tax losses narrowed to £798,000 in the period, from £9.2m a year ago, on revenue of £40.7m, from 7.7 million £.
The group said ‘Top Gun: Maverick performed well at the end of May, with Everyman receiving a 5.8% gross market share to date.
“Other strong titles included The Batman in March and Doctor Strange in the Multiverse of Madness in May.”
Better performance: Everyman Media Group announced a reduction in its interim losses in the first half
The company grew to an adjusted EBITDA of £7.5m in the period from a loss of £1.4m.
Its cinemas tend to have a small number of screens compared to its rivals, comfortable sofa like seats, and features such as food and drink delivered to the seats.
Alex Scrimgeour, boss of Everyman, said: “The cinema will always be an important part of the fabric of the UK as a place of entertainment, and has historically remained so during tougher economic conditions and the recession.
“We are confident that our unique brand of Everyman hospitality remains more relevant than ever.”
Everyman said comparing admissions with the same period in 2021 was difficult due to Covid-related closures.
But, compared to the first half of 2019, admissions are up 20%, driven by organic growth and the opening of nine new sites.
There were 300,000 additional admissions compared to the first half of 2019.
Scrimgeour said: “The first half of the fiscal year was a period of progress on all fronts, with healthy admissions growth and robust per capita spending, suggesting that we are now back on track. after the turbulence of recent years.
“Despite reduced film production due to the effect of low production during the pandemic, we have enjoyed three of the ten highest box office releases of all time over the past twelve months.”
“Looking forward, we are optimistic about our prospects. We are confident that film production is back in full swing and that the flow of great content will be bigger and better in the future, starting with an attractive pipeline of new releases for the rest of this year and next.
Popular: Everyone said ‘Top Gun: Maverick’ starring Tom Cruise did well at the box office
Scrimgeour said Everyman launched the second half of the year in line with expectations and the outlook for the rest was “promising”.
Canaccord Genuity, which rates the stock “buy,” said the results were “strong” and demonstrated Everyman had rebounded from the challenges of the pandemic.
He said: “Investments made in the client offering over the past few years, coupled with a strong film release schedule and the resumption of the site’s expansion plan, resulted in a record half-year performance in terms of sales and EBITDA.
“Its enhanced F&B offering and select film offering from major and independent releases provides a real point of differentiation for customers and has helped drive further market share gains.
“Looking ahead, there remains a significant growth opportunity available to the group, with a number of new site openings over the next 24 months.”
Shares of Everyman rose 2.98% or 2.89p to 99.9p late morning, but the group’s share price has fallen nearly 30% in the past year.