- Ten Entertainment continues to deliver sales growth
- Up 46% on pre-Covid levels on a like-for-like basis
- Shares up 3.6%, with peer Hollywood Bowl up 2.4%
A robust update from bowling alley operator Ten Entertainment (TEG) drew a positive response from the market and also helped lift shares in its rival Hollywood Bowl (BOWL).
In a trading statement covering the six-month period to 2 July Ten, which operates the Tenpin brand, posted year-on-year sales growth of 1.6% which was, significantly, some 46% ahead of pre-Covid levels.
While growth has slowed from the 2.7% seen in the first quarter, the rate for the period as a whole implying an easing to 1% in the second quarter, the business was up against some pretty tough comparatives. For the rest of the year, Ten expects to deliver low single-digit sales growth. Profitability is guided to be ‘within the range of market consensus’.
(Chart could not be loaded)
Ten Entertainment shares were up 3.6% to 290p on the news, with Hollywood Bowl also pulled 2.4% higher to 239p.
Ten Entertainment and Hollywood Bowl have both pursued a strategy of acquiring and revamping tired venues and making them the kind of place people want to visit for a relatively affordable trip out. Ten offers a broader range of activities and experiences, including escape rooms, karaoke and laser tag.
POSITIVE READ ACROSS FOR HOLLYWOOD BOWL
Ten Entertainment and Hollywood Bowl have both pursued a strategy of acquiring and revamping tired venues and making them the kind of place people want to visit for a relatively affordable trip out. Ten offers a broader range of activities and experiences, including escape rooms, karaoke and laser tag. Ten Entertainment will post its first-half results in full on 20 September.
Shore Capital analyst Greg Johnson highlighted the positive implications for Hollywood Bowl from Ten's release. He said: ‘We see a positive read across to peer Hollywood Bowl. Following first-half like-for-like growth (to March) of 3.5%, our current 2023 like-for-like estimate of broadly flat implies a mid-single-digit decline in the second half.
‘We would see Ten Entertainment’s continued positive momentum year-on-year in what will be Hollywood Bowl’s third quarter period as supportive of the view that our current year estimates are conservatively set.’
