Hollywood Bowl Group (BOWL) H1 2024 earnings summary

Executive summary

• Achieved record H1 FY2024 revenue of £119.2m, up 8.1% year-over-year, with strong growth in both UK and Canada segments.

• Adjusted EBITDA pre-IFRS 16 rose 10% to £38.6m, and adjusted EPS increased 6.2% to 13.60p; net cash at period end was £41.4m.

• UK like-for-like revenue grew 1.3%, while Canada LFL revenue grew 8.0%; new and acquired centres performed in line with expectations.

• Interim dividend of 3.98p per share declared, reflecting a progressive dividend policy of 55% payout and strong cash generation.

• Continued investment in refurbishments, technology, and customer experience, with a robust pipeline for new centres.

Financial highlights

• UK revenues exceeded £100m for the first time in H1, up 4.4% year-over-year; Canadian revenues reached £15.9m (CAD 27m), up 46.9%.

• Gross profit margin improved to 83.4% (+60bps), with UK at 83.9% and Canada at 80.0%.

• Adjusted profit after tax was £23.3m, up 6.5% year-over-year.

• Free cash flow was £16.5m; net cash at period end was £41.4m.

• Interim dividend per share increased to 3.98p.

Outlook and guidance

• Modest like-for-like growth expected in H2, with absolute growth supported by new and refurbished centres.

• Capital investment of £35–40m planned for new centres and refurbishments in FY2024; 10 refurbishments planned.

• Well-hedged against cost inflation, with electricity costs fixed through FY2027 and payroll ratio below 20%.

• Long-term target to grow estate to over 130 centres by 2035, with strong pipeline in both UK and Canada.

• Trading in line with Board expectations; resilient demand for value-for-money leisure.