Reading International (RDI) Q2 2024 earnings summary

Executive summary

• Q2 2024 results were significantly impacted by the lingering effects of the 2023 Hollywood strikes, resulting in a weak film slate, lower cinema attendance, and underperforming films, especially in April and May.

• Total revenue for Q2 2024 was $46.8 million, down 28% year-over-year, with global cinema revenue down 30% and real estate revenue down 3-4%.

• Net loss for Q2 2024 was $9.3 million, compared to a $2.8 million loss in Q2 2023, driven by lower revenues and higher interest expenses.

• Management remains optimistic about the second half of 2024 and 2025 due to a stronger film slate, ongoing operational improvements, and a rebound in June 2024 box office performance.

• Real estate division saw mixed results, with Australian assets outperforming and offsetting weaker U.S. and New Zealand performance.

Financial highlights

• Q2 2024 adjusted EBITDA was negative $0.2 million, down from $6.7 million in Q2 2023; operating loss was $4.4 million vs. $1.8 million operating income last year.

• Basic loss per share for Q2 2024 was $0.42, up from $0.12 in Q2 2023; six-month loss per share was $1.01 vs. $0.63.

• Cash and cash equivalents as of June 30, 2024, were $9.2 million; total debt was $210.4 million.

• Operating expenses for Q2 2024 decreased by $12 million year-over-year, mainly from lower film rent and food & beverage costs.

• Book value of assets at June 30, 2024 was $494.9 million, down from $533.1 million at year-end 2023.

Outlook and guidance

• The film slate for the remainder of 2024 and into 2025 is expected to drive industry recovery, with major releases like Beetlejuice Beetlejuice, Joker: Folie à Deux, Moana 2, Wicked, and Mufasa: The Lion King.

• 2025 box office is expected to benefit from high-profile titles including Avatar 3, Jurassic World, Mission: Impossible 8, The Fantastic Four, and Superman.

• Management expects improved results in 2025 and 2026, supported by a robust pipeline and operational initiatives.

• No significant CapEx is planned for 2025, but select theater upgrades are expected with landlord support.

• Plans to monetize additional real estate assets if liquidity needs require, with several properties currently held for sale.