Everyman Media lifts FY expectations on better-than-expected admissions

Independent cinema chain Everyman Media Group upgraded its full-year expectations on Monday thanks to better-than-anticipated admissions.

In an update for the year to 30 December, the company said admissions since the interim results in September have been ahead of expectations. As a result, it now expects group revenues and earnings before interest, tax, depreciation and amortisation to exceed current market expectations.

On the basis of no further Covid restrictions this year, it expects to report "turnover of not less than £46.3m and EBITDA of not less than £7.0m".

"Looking beyond the current financial year, early indications suggest the appetite for cinema remains strong and we are optimistic for the outlook of the sector," Everyman added.

Canaccord Genuity said the company's performance in recent weeks was "hugely encouraging" after the challenges experienced since the start of the pandemic "and whilst clearly helped by the success of the latest Bond film is also testament to the effort made during the periods of enforced closure to enhance the Everyman offer, which is clearly resonating well with customers".

"We have previously highlighted the growth opportunity available to the group, including a number of new site openings over the coming 24 months, and believe EMAN looks well placed for future growth. We increase our FY21E revenue forecast by 9% to £46.3m and adjusted EBITDA by 47% to £7.0m.

"At this stage we conservatively leave outer year forecasts unchanged which assume no further Covid-19 restrictions albeit we remain cognisant that the situation remains fluid with a degree of uncertainty. We reiterate our 'buy' recommendation and maintain our 245p target price."