EVERYMAN MEDIA GROUP (EMAN) H1 2023 earnings summary

Executive summary

• Revenue for H1 2023 was £38.3m, down from £40.7m in H1 2022, reflecting timing of major film releases and lower admissions, but trading remains in line with expectations.

• Adjusted EBITDA was £5.8m (H1 2022: £7.5m, which included a £0.9m VAT benefit); gross profit margin improved to 65.6% from 62.5%.

• Food & Beverage spend per head rose to £10.25 (H1 2022: £8.96), and average ticket price increased to £11.49 (H1 2022: £11.32).

• Opened new venues in Salisbury, Northallerton, and Plymouth, bringing the estate to 41 cinemas and 141 screens.

• Strong post-period trading in July and August, with YTD revenue at £60.2m (2022: £53.1m) and YTD EBITDA at £11.0m (2022: £9.8m).

Financial highlights

• Admissions in H1 2023 were 1.6m, down from 1.8m in H1 2022, due to fewer major releases in the first half.

• Operating loss for H1 2023 was £1.6m, compared to a profit of £0.8m in H1 2022.

• Net loss for the period was £4.3m (H1 2022: £0.8m loss); basic and diluted EPS were both (4.73)p.

• Cash generated from operating activities was £7.2m (H1 2022: £9.1m); cash at period end was £1.7m (H1 2022: £5.9m).

• Net debt at period end was £21.3m, falling to £17.9m by September 2023.

Outlook and guidance

• Board remains confident of meeting full-year market expectations, with major film releases in H2 expected to drive performance.

• Recent box office successes (Barbie, Oppenheimer) have driven strong trading in July and August.

• Pipeline includes new venues in Marlow (Q3 2023), and at least five more openings in 2024.

• New £35m loan facility agreed, providing financial flexibility for future growth.