Hollywood Bowl: Record revenue for ten-pin bowling operator but shares drop
Ten-pin bowling operator Hollywood Bowl has reported record revenue this year as Brits continue to flock to competitive socialising venues.
The firm, which operated 85 venues across the UK and Canada, said revenue rose 7.1 per cent in the year ended 30 September 2024, from £215.1m to £230.4m.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 5.9 per cent to £87.6m.
However, Hollywood Bowl firm reported a decline in profit before tax. The figure fell 5.2 per cent year on year to £42.8m. Its share price subsequently fell nearly seven per cent in early trades.
This was partly due to an impairment charge related to losses in its mini golf business.
Although the company’s bowling arm performed well, its golf divisions continued to suffer. It said customer demand for mini-golf centres was “lower than anticipated” and took an impairment charge of £5.3m on its mini golf arm.
Russ Mould, investment director at AJ Bell, questioned whether impairments were now “par for the course” for the firm, adding that the charge “marred its full-year results and put a dampener on the share price”.
“Despite these negative issues, there were areas for the company to celebrate as it reported record annual revenue. Hollywood Bowl’s offering of a relatively good value, family-oriented activity, which can be enjoyed when the weather is poor, is clearly resonating in both the UK and Canada,” Pattinson said.
The company added four new bowling centres to its portfolio during the year, with an additional 10 venues refurbished. It expects to open at least four additional centres in the UK and two in Canada by the end of 2025.
While Hollywood Bowl said its labour cost would go up due to changes announced in the Autumn budget, it expected the annual bill to rise by just £1.2m.
CEO Stephen Burns said: “We are pleased to report another strong performance reflecting the ongoing demand for family friendly, affordable leisure. I am extremely grateful to my fantastic colleagues for their hard work and dedication each day to giving our customers the best possible experiences.
“Following a year of record levels of investment, our proven growth strategy continues to deliver strong returns. Bowling is unique in its ability to appeal to a wide demographic with anyone able to take part, and we are confident in the ongoing strong demand for fun and inclusive family-friendly experiences at an affordable price. The outlook remains positive as we continue to expand and innovate in the UK and seize the significant market opportunity in Canada.”