Everyman Media Group PLC (AIM:EMAN) shares slid 18% to 29p after the premium cinema operator cut its revenue and profit expectations for the year, blaming a softer-than-hoped UK box office in the final quarter.
The group said it is still set to deliver year-on-year growth across its main operating metrics, including revenue, earnings, spending on food and drink, average ticket price and market share, despite what it called a “challenging economic environment”.
But with cinema admissions lagging industry forecasts in the run-up to Christmas, the board now expects revenue of at least £114.5 million for the year to 1 January, down from previous market expectations of £121.5 million. EBITDA is forecast to be no less than £16.8 million, below the roughly £19.9 million analysts had pencilled in.
Net debt is likely to finish the year at about £24 million, compared with £18.1 million a year earlier. The company also noted that last year’s 53-week reporting period makes comparisons tricky: on a like-for-like 52-week basis, it still expects to show growth over FY24.
A fuller trading update and refreshed guidance are due in January. Chief executive Alex Scrimgeour said Everyman had increased revenue, earnings and customer spend per head during the year and remains confident in the long-term prospects for premium cinema.