London, United Kingdom
Everyman Media Group, a leading cinema company in the UK, has announced a widened pretax loss for the first half of 2023. Despite experiencing growth in gross-profit margin, the company faced higher administrative and finance expenses during this period. However, Everyman Media Group remains optimistic and expects to meet full-year market expectations.
According to the company’s financial report released on Wednesday, the pretax loss for the six months ended June 29 was £4.3 million ($5.2 million), compared to a loss of £798,000 in the same period last year. The drop in revenue to £38.3 million from £40.7 million can be attributed to the phasing of admissions and the opening of three new venues.
The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA)—a key metric for the company—amounted to £5.8 million, compared to £7.5 million in the previous year. It is important to note that this figure includes a £900,000 benefit from the temporary reduction in VAT of 12.5%, which lasted until March 31, 2022. After this date, the standard 20% rate of VAT resumed.
Everyman Media Group has provided a revenue market consensus for 2023, forecasting £94.4 million, along with an adjusted EBITDA of £17.2 million. This shows significant growth compared to the figures of £78.8 million and £14.5 million, respectively, recorded in 2022.
One positive aspect noted in the report is the increase in gross profit margin from 62.5% to 65.6%. This improvement is primarily due to a rise in food and beverage spending per customer.
Chief Executive Alex Scrimgeour expresses confidence in the company’s prospects, citing a slate of high-quality film releases scheduled for the second half of the year, a carefully expanded estate, and new banking facilities that position Everyman Media Group well to seize future opportunities. However, due to the current stage of the group’s development, the board does not recommend the payment of a dividend at this time.