Shares in Everyman Media Group PLC (AIM:EMAN) were flipped up 6% after the upmarket cinema chain lifted the curtain on half-year results showing improved sales and profits, while saying that its rate of investment in opening new cinemas will curtail profits in 2025.
After opening a three-screen venue in Bury St Edmunds, the group now operates 45 cinemas around the country, while the period also saw membership grow to 45,684 at the end of June, up 76% from a year earlier.
This, plus demand for films including 'Dune Part Two', 'Poor Things 'and 'Bob Marley: One Love' helped Everyman grow revenues 22% in the first half to £46.9 million, on admissions that rose to 1.9 million from 1.6 million. Spend per head increased 2.1% to £10.47.
Underlying profits (EBITDA) came to £6.2 million, up 7% year-on-year, though operating losses increased slightly to £1.8 million due to higher administrative expenses.
The group said it had an "excellent pipeline" of films for the remainder of the year, including 'Joker: Folie à Deux', 'Gladiator II', 'Paddington in Peru', 'Wicked', 'Moana 2' and 'Mufasa: The Lion King'.
It also expects to open a new five-screen cinema in Cambridge in November and a three-screen venue in Stratford, East London in December.
The board expressed confidence about the full year being in line with market expectations, with chief executive Alex Scrimgeour saying Everyman is "comfortable that continuing to scale at current levels - three new venues in 2024, and four in 2025 - will provide a robust increase in footprint.
"Whilst this level of openings will naturally reduce the rate of growth in 2025 from current market expectations, this allows the company to strengthen its balance sheet and reduce net debt moving forward. This will give us the scope and flexibility to take advantage of excellent pipeline opportunities in 2026 and beyond."