Reading International ((RDI)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Reading International’s recent earnings call painted a picture of both progress and challenges. The company reported significant improvements in operating income and revenue growth, alongside a commendable reduction in debt. However, it continues to face hurdles in real estate revenue and net loss positions, influenced by asset sales and currency exchange rates.
Record Second Quarter Operating Income
Reading International achieved its best second quarter operating income since 2019, with contributions from both its global cinema and real estate divisions. This milestone underscores the company’s effective strategies in navigating the post-pandemic landscape.
Significant Debt Reduction
The company made strides in debt reduction, notably through the sale of Cannon Park assets in Townsville, Australia, for AUD 32 million. This transaction allowed Reading International to pay off significant portions of its debt, including a AUD 20 million NAB bridging facility and a reduction of Bank of America debt by AUD 1.5 million. Since June 2020, the company has repaid over $102.5 million in debt.
Strong Revenue Growth
Reading International reported a 29% increase in global total revenues compared to Q2 2024, reaching $60.4 million. This growth is a testament to the company’s robust recovery efforts and strategic initiatives.
Improved Global Operating Income
The company saw a remarkable 138% increase in global operating income, transitioning from a global operating loss of $7.7 million in Q2 2024 to a positive $2.9 million.
Positive EBITDA Growth
EBITDA saw an impressive growth of over 276%, moving from a negative $3.6 million in Q2 2024 to $6.3 million, highlighting the company’s enhanced operational efficiency.
Record F&B Spend Per Patron
The company achieved the highest food and beverage spend per patron in its history across Australia, New Zealand, and the U.S., indicating strong consumer engagement and spending.
Successful Movie Releases
Box office performance was bolstered by successful releases such as the Minecraft Movie, Lilo & Stitch, and Mission: Impossible, contributing to the company’s revenue growth.
U.S. Cinema Revenue Increase
U.S. cinema revenue saw a significant increase of 41%, reaching $30.3 million compared to the second quarter of 2024, reflecting a robust recovery in the domestic market.
Australian and New Zealand Cinema Success
Cinema revenues in Australia and New Zealand increased by 24%, reaching $22.9 million and $3.6 million, respectively, showcasing the company’s strong market presence in these regions.
Decreased Real Estate Revenue
Despite overall growth, global real estate total revenue decreased by 7%, from $5 million in Q2 2024 to $4.7 million in Q2 2025, due to asset monetization.
Net Loss Despite Improvements
Although Reading International reduced its net loss, it remained at a loss of $2.7 million compared to a loss of $12.8 million in Q2 2024, indicating ongoing financial challenges.
Negative Impact of Currency Exchange Rates
The company’s results were adversely affected by weakened Australian and New Zealand dollar exchange rates against the U.S. dollar, impacting financial performance.
Real Estate Asset Sales Impact
The decrease in real estate revenue was partly due to asset sales, which, while aiding debt reduction, impacted overall revenue figures.
Forward-Looking Guidance
Looking ahead, Reading International anticipates continued growth, with global total revenues having increased by 29% year-over-year. The company aims to maintain its focus on debt reduction and financial health, having reduced its total outstanding borrowings to $173.4 million. The U.S. cinema circuit’s record average ticket price and high food and beverage spend per patron are expected to bolster future performance.
In summary, Reading International’s earnings call highlighted a blend of achievements and challenges. The company has made significant strides in revenue growth and debt reduction, yet it continues to grapple with real estate revenue declines and net losses. The overall sentiment remains optimistic, with strategic initiatives poised to drive future success.