Everyman Media Group PLC on Friday said it is trading in line with expectations, although first-half revenue and earnings were lower.
In the 26 weeks that ended June 29, the London-based independent cinema chain said revenue was down 5.9% to £38.3 million from £40.7 million a year earlier, but claimed the first half of 2022 was a ‘strong comparator’.
‘The majority of key 2023 releases fall in [the first half of] 2023, leading to a second half weighting to annual financial performance,’ the company explained.
Earnings before interest, tax, depreciation and amortisation were down 23% to £5.8 million from £7.5 million. Everyman said the prior period benefitted from the reduced rate of value-added tax in the first quarter of last year worth £900,000 in Ebitda, alongside popular film releases.
Three new venues also opened at the end of the first half, taking its estate to a total of 41 venues. It expects open another venue in October while the pipeline for 2024 ‘remains well-developed’.
Post-period, Everyman said Barbie and Oppenheimer released in the final week of July, delivered record admissions and enabled the group to achieve an exceptional month of trading, which it also expects to continue into August.
Revenue rose 49% to £10.6 million from £7.1 million in July 2022, while Ebitda doubled to £2.6 million from £1.3 million.
‘There is a strong pipeline of further titles set to be released including Dune: Part Two, Wonka, The Hunger Games: The Ballad of Songbirds & Snakes, Napoleon, and Killers of the Flower Moon,’ the company said.
Chief Executive Officer Alex Scrimgeour said: ‘Everyman remains an affordable and popular choice for consumers. The record week of admissions we saw in July demonstrates both the value of original content, and the fact that cinema remains as relevant as ever.
‘Alongside this, we continue to see increasing demand for our high-quality food and beverage offering. The all-encompassing Everyman experience leaves us very well placed to satisfy consumer demand for premium entertainment.’
Everyman intends to publish its interim results on September 27.
Everyman agreed to a new three-year £35 million loan facility with Barclays Bank PLC and National Westminster Bank PLC, extendable by a further two years subject to lender consent.
This replaces the £25 million revolving credit facility and £15 million coronavirus large business interruption loan scheme held with Barclays Bank and Santander UK PLC.
Everyman said the facility ensures that the group is soundly financially structured and well-positioned to take advantage of opportunities moving forwards.
Shares in Everyman were down 1.7% to 59.00 pence each in London on Friday morning.
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