Hollywood Bowl makes strong start with revenue up across business

Hollywood Bowl Group reported total revenues of £67m for the six months ended 31 March on Thursday, up from £63.6m at the same time a year ago.

The London-listed tenpin bowling operator said its like-for-like revenue growth was 4.4%, compared to a growth rate of 4% at the interim in 2018, while group adjusted EBITDA managed to rise to £21.1m from £20.7m.

Its group adjusted EBITDA margin was 31.6%, down from 32.5%.

Operating profit improved to £16.8m from £15m, and profit before tax was £16.4m, up from £14.6m.

Profit after tax was also higher at £13.4m, rising from £11.8m in the six months ended 31 March 2018.

Hollywood Bowl’s basic earnings per share were 8.92p, compared to 7.85p, while net debt narrowed to £5.3m from £7.2m.

The company declared an interim ordinary dividend per share of 2.27p, rising from the 2.03p distribution offered to shareholders at the mid-way point of the 2018 financial year.

“We are delighted at the strong start to the year which puts us on track to deliver our expectations for the full year,” said Hollywood Bowl chief executive officer Stephen Burns.

“We continue to invest in the quality of our estate, driving returns through our new centre openings and active refurbishment programme.”

Burns said that was complemented by the successful rollout of “proven” initiatives, as part of the firm’s “unrelenting” focus to continuously improve and create the best possible customer experience, resulting in positive growth across all of its revenue lines.

“There remains significant scope for further sustainable growth through the continued investment in the quality of our centres, our new centre pipeline as well as the introduction of new technology and initiatives that enhance our already industry leading customer proposition.”