Hollywood Bowl, the ten-pin bowling operator, has announced record revenue this year as Brits continue to enjoy competitive socialising venues. The company, which operates 85 venues across the º£½ÇÊÓƵ and Canada, reported a 7.1 per cent increase in revenue for the year ending 30 September 2024, rising from £215.1m to £230.4m.
Earnings before interest, tax, depreciation and amortisation (EBITDA) also increased by 5.9 per cent to £87.6m. However, the firm saw a decline in profit before tax, with figures falling 5.2 per cent year on year to £42.8m, causing its share price to drop nearly seven per cent in early trades, as reported by .
This was partly due to an impairment charge related to losses in its mini golf business. Despite the strong performance of the company’s bowling arm, its golf divisions continued to struggle.
The company stated that 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 º£½ÇÊÓƵ and Canada," Pattinson said.
The firm expanded its portfolio with four new bowling centres and refurbished 10 existing venues during the year. It plans to open at least four more centres in the º£½ÇÊÓƵ and two in Canada by the end of 2025.
Despite anticipating a rise in labour costs due to changes announced in the Autumn budget, Hollywood Bowl expects the annual bill to increase by only £1.2m. CEO Stephen Burns commented: "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. " He added: "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 º£½ÇÊÓƵ and seize the significant market opportunity in Canada."
