Everyman Media Group PLC (AIM:EMAN), the independent cinema business, reported “strong” trading for the first six months and said it expects results for the full year to at least meet market expectations.
In the 26 weeks to 30 June 2022, the premium cinema group generated revenue of £40.7mln and underlying profit (adjusted EBITDA) of £7.5mln, compared with £7.7mln and a £1.4mln loss in the same period last year, respectively.
Admissions surged 20% to 1.8mln during the period despite a decline in film releases after movie production was hit by the Covid-19 pandemic.
The results from the UK’s fourth-largest cinema business by venues came ahead of this coming Friday’s release of delayed interims from embattled cinema group Cineworld Group PLC (LSE:CINE), which recently filed for Chapter 11 bankruptcy protection in the US as it seeks to restructure after being hit by low audience numbers.
Commenting on the results, Everyman Media chief executive Alex Scrimgeour said: "The first half of the financial year has been a period of progress on all fronts, with healthy admissions growth and robust spend per head, suggesting we are now back on track following the turbulence of recent years.
“Despite reduced film output due to the effect of low production during the pandemic, we've enjoyed three of the ten highest-ever box office releases in the past 12 months.”
He expressed optimism about the company’s prospects.
“We are confident that film production is back up to full speed and that the flow of excellent content will be bigger and better going forward, beginning with an attractive pipeline of new releases over the remainder of this year and next,” he said.
He added that the second half has started in line with expectations and that the outlook is “promising”.
“The acceleration of our openings strategy is now well underway and we are excited about the wealth of opportunities emerging to bolster and supplement the Everyman brand outside of the core proposition.”
The group opened a five-screen venue in Edinburgh in April and a four-screen venue in Egham in September. Meanwhile, its Durham venue is due to open in November, with four further venues confirmed for 2023.
Shares rose almost 3% to 99.90p in midmorning trade.