Hollywood Bowl Group (BOWL) H1 2026 earnings summary

Executive summary

• Achieved record H1 revenue of GBP 141.5 million, up 9.5% year-over-year, with strong like-for-like growth in both the UK and Canada, driven by robust demand for affordable family leisure and successful new centre openings.

• Adjusted EBITDA after rent rose 8.9% to GBP 42.2 million, with profit after tax reaching up to GBP 24.2 million.

• Interim dividend increased 10.2% to GBP 0.0452 per share, funded from GBP 26 million net cash; GBP 5 million buyback planned for H2.

• Technology-led operational improvements and disciplined cost management supported yield and margin resilience.

• Strategic expansion continued with new locations, including Edmonton, Alberta, and an accelerating pipeline for future growth.

Financial highlights

• Group revenue grew 9.5% to GBP 141.5 million, with like-for-like revenue up 2.3%.

• Adjusted EBITDA after rent was GBP 42.2 million, up 8.9% year-over-year; Adjusted PBT increased 8.1% to GBP 32.1 million.

• Adjusted EPS rose 11.3% to 14.51p; reported EPS declined 2.5% to 11.70p due to non-cash impairment.

• Gross margin remained high at 62.8%, slightly down from 63.8% year-over-year due to higher labour costs.

• Free cash inflow of GBP 30 million before shareholder distributions, with 71% conversion from group-adjusted EBITDA.

Outlook and guidance

• Confident in delivering FY26 expectations, supported by robust demand, cost discipline, and dynamic pricing.

• Two new UK centres and one Canadian centre to open in H2 FY26; pipeline targets four new centres per year.

• Targeting 95 UK centres by 2035 and 35 Canadian centres by FY32.

• Costs are well controlled, with labour and energy expenses managed and hedged (76% hedged to FY29).

• FY26 capex is back-end loaded (£8–12m expected in H2); GBP 5 million buyback programme planned.