- Resilient first half against tough comparatives
- Strong summer trading on success of Barbie and Oppenheimer
- Reiterates full year revenue and profit expectations
Premium cinema group Everyman Media (EMAN) said the resounding box office success of Barbie and Oppenheimer led to strong summer trading leaving it confident of meeting full year expectations.
Unfortunately, both revenue and adjusted EBITDA (earnings before interest, tax, depreciation, and amortisation) fell in the first half to 29 June, admittedly against strong prior year comparatives.
Investors seemed unmoved by the upbeat outlook, with the shares dropping 1% to 55p capping a disappointing 12 months for shareholders with the shares down 44%.
WHAT DID THE COMPANY SAY?
Chief executive Alex Scrimgeour commented: ‘We are pleased to report that trading continues to be in line with the board's expectations, having achieved robust interim results despite this year's major film titles falling in the second half of 2023.
We remain confident in our prospects as we continue to be supported by a slate of high-quality second-half releases, a carefully expanded estate and new banking facilities which ensure we are well configured to take advantage of future opportunities.’
Revenue fell 6% to £38.3 million in the first half, but strong trading in July and August transformed the picture with year-to-date revenue 13% higher at £60 million while EBITDA was 12% ahead at £11 million.
Everyman expects to meet full-year consensus forecasts which call for revenue of £94.4 million, representing 20% growth, and EBITDA of £17.2 million compared with £7.9 million in 2022.
CAUTIOUS EXPANSION
Having opened three new venues in the first half, taking the estate to 41 cinemas and 141 screens, the company has a healthy pipeline of new opportunities.
A new two-screen venue will open in Marlow in the current quarter, while a further five venues are planned for 2024 including a three-screen venue in Stratford in the third quarter.
The firm agreed a new three-year loan facility of £35 million replacing a £25 million revolving credit facility and £15 million Covid interruption loan.
EXPERT VIEW
Leisure analyst Mark Photiades at Canaccord Genuity commented: ‘The film slate for Q4 and beyond is strong with a number of major releases and independent films due including Wonka, Ferrari, Napoleon, Killers of the Flower Moon and the latest instalment of The Hunger Games.’
Photiades left his forecasts unchanged but reiterated his buy rating, saying, ‘Everyman remains a premium brand, synonymous with offering a first-class cinema and hospitality experience & a best-in-class food and beverage offer prepared in-house.’
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