Hollywood Bowl Group (BOWL) H1 2025 earnings summary

Executive summary

• Achieved record H1 revenue of £129.2m, up 8.4% year-over-year, and record adjusted EBITDA pre-IFRS 16 of £38.8m, with underlying growth of 8.8% after adjusting for prior year one-offs, despite inflationary pressures.

• Opened five new centres (three in the UK, two in Canada) and completed six refurbishments, all trading in line with expectations.

• Maintained a strong balance sheet with net cash of £22.7m and renewed undrawn £25m revolving credit facility on improved terms.

• Completed £10m share buyback, equivalent to two years of special dividends, and declared interim dividend of 4.10p per share (+3% YoY).

• Profit before tax was £28.3m; profit after tax £20.6m; basic EPS 12.00p.

Financial highlights

• Group revenue up 8.4% to £129.2m; UK revenue up 4.7% to £108.2m; Canada revenue up 40.8% to £21.1m.

• Group adjusted EBITDA pre-IFRS 16 at £38.8m (+0.5%); underlying growth 8.8% after adjusting for £3.0m prior year one-offs.

• Gross profit margin at 83.0%; UK margin 84.2% (+30bps), Canada margin 76.8%.

• Adjusted EPS at 12.01p, down 11.6% year-over-year due to prior year one-offs.

• Adjusted operating cash flow £33.0m; free cash flow £12.8m; capex £20.0m in H1 FY2025.

Outlook and guidance

• Confident in mid to high single-digit EBITDA and profit growth over the coming years as new centres mature.

• Expects continued revenue growth in both UK and Canada, with further new centre openings and robust pipeline for H2 and beyond.

• 70% of revenue not subject to cost inflation; energy hedged to FY2027; UK payroll ratio remains below 20%.

• Total FY2025 capex expected at £40–45m, with further new centre openings and refurbishments planned.

• Full-year EBITDA expected within current analyst forecast range.