Reading International ((RDI)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Reading International’s recent earnings call conveyed a moderately positive sentiment, reflecting significant achievements in debt reduction and improved EBITDA. However, these accomplishments were balanced by revenue declines and challenges in international markets, leading to a cautious outlook.
Improved EBITDA and Net Loss
Reading International reported a 26% increase in EBITDA, reaching $3.6 million, marking five consecutive quarters of positive EBITDA. The net loss improved by 41%, representing the best third-quarter result since 2019, showcasing the company’s efforts in financial recovery.
Debt Reduction and Interest Expense Decrease
The company achieved a 15% reduction in its global debt balance from December 2024 to September 2025, alongside a $2.6 million or 17% decrease in interest expenses compared to the previous year. This highlights Reading International’s commitment to strengthening its financial position.
Record Food and Beverage Spend Per Patron
Reading International recorded its highest third-quarter food and beverage spend per patron (F&B SPP) in all markets, with figures reaching AUD 8.05 in Australia, NZD 6.75 in New Zealand, and $8.74 in the U.S., indicating successful customer engagement strategies.
Strong Upcoming Film Slate and Presales
The company reported strong global presales for ‘Wicked: For Good,’ nearing $850,000, reflecting robust demand. The 2026 film slate includes major franchise releases like Spider-Man: Brand New Day, Toy Story 5, and Shrek 5, promising a strong future performance.
Live Theater Segment Success
The U.S. Real Estate division delivered its best Q3 operating income since 2014, with a 35% increase in revenue and a 433% increase in operating income, underscoring the success of Reading International’s live theater segment.
Strategic Real Estate Sales
Sales of Cannon Park and Wellington assets contributed to significant debt reduction and provided liquidity to meet operational needs, demonstrating strategic asset management.
Revenue Decline
Global total revenue decreased by 13% compared to Q3 2024, driven by a weaker film slate and unfavorable foreign exchange rates, highlighting challenges in maintaining revenue growth.
Cinema Revenue and Operating Income Decrease
The company’s global cinema revenues decreased by 14%, and operating income fell by 21% compared to the previous year, reflecting the impact of a weaker film slate and market challenges.
Challenges in Australia and New Zealand
Australian cinema revenue decreased by 17%, and New Zealand cinema revenue decreased by 23%, with significant operating income reductions in both regions, indicating regional market difficulties.
Foreign Exchange Impact
The devaluation of the Australian and New Zealand dollars against the U.S. dollar by 2.3% and 3.1%, respectively, compared to Q3 2024, adversely affected Reading International’s financial performance.
Forward-Looking Guidance
Despite a 13% decrease in global total revenue to $52.2 million in Q3 2025, Reading International remains optimistic. The company achieved a 26% increase in positive EBITDA and a 41% improvement in net loss. Strategic initiatives, such as closing an underperforming cinema and enhancing F&B SPP, are expected to support future growth. The company also anticipates strong performance from upcoming movies and a promising 2026 film lineup.
In conclusion, Reading International’s earnings call reflected a cautiously optimistic sentiment. While the company achieved significant financial improvements, challenges in revenue and international markets remain. The strategic focus on debt reduction, strong film slate, and operational enhancements positions the company for potential future success.