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Reading International (RDI)
:RDI
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Reading International
(NASDAQ:RDI)
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Rating:53Neutral
Price Target:
$1.50
▼(-2.60% Downside)
Reading International's overall stock score reflects significant financial challenges, despite some positive momentum in technical indicators and improvements highlighted in the earnings call. The company's weak financial performance and valuation concerns weigh heavily on the score, though strategic initiatives and cinema successes offer some optimism.
Reading International (RDI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$50.88M
Dividend YieldN/A
Average Volume (3M)65.25K
Price to Earnings (P/E)―
Beta (1Y)0.24
Revenue Growth7.59%
EPS Growth61.22%
CountryUS
Employees2,025
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)-0.12
Shares Outstanding21,036,670
10 Day Avg. Volume51,082
30 Day Avg. Volume65,245
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap7.42
Enterprise Value/Revenue1.72
Enterprise Value/Gross Profit13.44
Enterprise Value/Ebitda23.62
Forecast
1Y Price Target
$1.50Price Target Upside-2.60% Downside
Rating ConsensusHold
Number of Analyst Covering1
Reading International Business Overview & Revenue Model
Company DescriptionReading International, Inc. (RDI) is a diverse entertainment and real estate company that operates in two primary sectors: theatrical exhibition and real estate development. The company owns and operates a portfolio of cinemas, primarily under the landmark brand, as well as various properties in the United States and Australia. RDI's core offerings include movie screenings, special events, and real estate leasing, aiming to provide high-quality entertainment experiences and innovative real estate solutions.
How the Company Makes MoneyReading International generates revenue through multiple streams, primarily from its cinema operations and real estate activities. The company's theatrical exhibition segment earns money from ticket sales, concessions, and advertising revenue within its theaters. Additionally, RDI's real estate development initiatives contribute to its revenue through leasing commercial properties and developing real estate projects. The company may also engage in partnerships with film distributors and local businesses, enhancing its market reach and promotional efforts. Factors such as the popularity of films, consumer spending trends, and effective management of its real estate portfolio significantly influence its earnings.
Reading International Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant improvements in operating income, revenue growth, and debt reduction, with notable successes in cinema operations and strategic initiatives. However, challenges remain in real estate revenue and net loss positions, partly due to asset sales and currency exchange rates.Q2-2025 Updates
Positive Updates
Record Second Quarter Operating Income
The company delivered the best second quarter operating income since Q2 2019, with global cinema and real estate divisions contributing to improved results.
Significant Debt Reduction
The company completed the sale of Cannon Park assets in Townsville, Australia for AUD 32 million, using the proceeds to pay off AUD 20 million NAB bridging facility and reduce Bank of America debt by AUD 1.5 million. Since June 2020, over $102.5 million of debt has been repaid.
Strong Revenue Growth
Global total revenues increased by 29% compared to Q2 2024, reaching $60.4 million.
Improved Global Operating Income
Global operating income increased by 138% from a global operating loss of $7.7 million in Q2 2024 to $2.9 million.
Positive EBITDA Growth
Positive EBITDA increased over 276% from a negative EBITDA of $3.6 million in Q2 2024 to $6.3 million.
Record F&B Spend Per Patron
Achieved the highest F&B SPP in Australia, New Zealand, and the U.S. for any quarter.
Successful Movie Releases
Successful releases such as Minecraft Movie, Lilo & Stitch, and Mission: Impossible contributed to strong box office performance.
U.S. Cinema Revenue Increase
U.S. cinema revenue increased by 41% to $30.3 million compared to the second quarter of 2024.
Australian and New Zealand Cinema Success
Australian cinema revenue increased 24% to $22.9 million, and New Zealand cinema revenue increased 24% to $3.6 million.
Negative Updates
Decreased Real Estate Revenue
Global real estate total revenue decreased by 7% from $5 million in Q2 2024 to $4.7 million in Q2 2025.
Net Loss Despite Improvements
Net loss attributable to Reading International Inc. decreased but remained at a loss of $2.7 million compared to a loss of $12.8 million in Q2 2024.
Negative Impact of Currency Exchange Rates
Results were negatively impacted by weakened Australian and New Zealand dollar average exchange rates against the U.S. dollar.
Real Estate Asset Sales Impact
Decrease in real estate revenue due to asset monetization, impacting overall revenues.
Company Guidance
In the Reading International second quarter 2025 earnings call, a range of financial metrics highlighted the company's improved performance. Global total revenues increased by 29% year-over-year, reaching $60.4 million, while global operating income rose by 138% to $2.9 million from a $7.7 million loss in Q2 2024. EBITDA saw a significant increase of over 276%, reaching $6.3 million from a negative $3.6 million in the previous year, aided partly by the gain from the sale of Cannon Park assets in Australia. Global cinema revenue increased 32% to $56.8 million, representing 79% of pre-pandemic levels. The U.S. cinema circuit achieved its highest-ever average ticket price (ATP) of $13.44, while the food and beverage spend per patron (F&B SPP) reached record highs across Australian, New Zealand, and U.S. markets at $8.26, NZD 7.14, and $9.13, respectively. The company also reported a 152% improvement in U.S. operating income to $2.3 million. The real estate segment saw mixed results, with global revenues slightly decreasing but operating income increasing by 56% due to improvements in the U.S. live theater business. Notably, the company reduced its total outstanding borrowings to $173.4 million from $202.7 million at the end of 2024, illustrating its continued focus on debt reduction and financial health.Reading International Financial Statement Overview
Summary
Reading International is facing significant financial challenges, with negative revenue growth, persistent net losses, and a negative equity position indicating financial instability. Despite some improvement in free cash flow, the overall financial health remains weak.Income Statement
Reading International has been experiencing a decline in revenue over the TTM compared to the previous year, with a negative revenue growth rate of -2.32%. The company has negative EBIT and EBITDA margins, indicating operational challenges. Gross profit margin improved slightly in recent periods, but net profit margin remains negative due to persistent net losses. Overall, the income statement reflects ongoing profitability issues.45
Neutral
Balance Sheet
The company's balance sheet reveals significant leverage with a negative stockholders' equity, leading to an undefined debt-to-equity ratio, highlighting financial risk. Furthermore, the equity ratio is negative due to the deficit in equity. The declining total assets and increasing total liabilities over time further stress the financial instability of the company.30
Negative
Cash Flow
Operating cash flow is negative, but there is a notable improvement in free cash flow in the TTM, reducing losses. However, the operating cash flow to net income ratio remains negative, indicating cash flow issues relative to net losses. Despite some improvement in free cash flow, overall cash flow management remains a challenge.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 219.21M | 210.53M | 222.74M | 203.12M | 139.06M | 77.86M |
| Gross Profit | 28.07M | 21.91M | 26.56M | 15.40M | 6.05M | -21.78M |
| EBITDA | 15.98M | 2.90M | 8.94M | 1.40M | 100.34M | -17.80M |
| Net Income | -20.26M | -35.30M | -30.67M | -36.18M | 31.92M | -65.86M |
Balance Sheet | ||||||
| Total Assets | 438.07M | 471.01M | 533.05M | 587.05M | 687.70M | 690.17M |
| Cash, Cash Equivalents and Short-Term Investments | 9.09M | 12.36M | 12.92M | 29.96M | 83.25M | 26.85M |
| Total Debt | 359.68M | 390.22M | 418.78M | 443.61M | 481.09M | 524.14M |
| Total Liabilities | 446.50M | 475.80M | 500.06M | 523.78M | 582.64M | 609.00M |
| Stockholders Equity | -7.68M | -4.36M | 33.09M | 62.86M | 104.07M | 77.77M |
Cash Flow | ||||||
| Free Cash Flow | 5.44M | -3.83M | -15.08M | -35.74M | -29.05M | -48.73M |
| Operating Cash Flow | 3.17M | -3.83M | -9.73M | -26.35M | -13.50M | -30.20M |
| Investing Cash Flow | 34.37M | 3.96M | -2.70M | -9.49M | 129.61M | -18.77M |
| Financing Cash Flow | -35.67M | 337.00K | -6.67M | -16.56M | -50.28M | 59.33M |
Reading International Technical Analysis
Positive
1.54
Price Trends
1.44
Positive
1.40
Positive
1.40
Positive
Market Momentum
0.03
Positive
53.94
Neutral
40.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDI, the sentiment is Positive. The current price of 1.54 is above the 20-day moving average (MA) of 1.53, above the 50-day MA of 1.44, and above the 200-day MA of 1.40, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 53.94 is Neutral, neither overbought nor oversold. The STOCH value of 40.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RDI.
Reading International Risk Analysis
Reading International disclosed 9 risk factors in its most recent earnings report. Reading International reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Reading International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | 3.29B | 15.58 | 65.32% | 0.84% | 13.80% | 109.00% | |
66 Neutral | 479.70M | 35.00 | 1.46% | 1.85% | 13.28% | ― | |
65 Neutral | 64.09M | 25.07 | 9.30% | ― | 77.07% | ― | |
53 Neutral | $50.88M | ― | -540.12% | ― | 7.59% | 61.22% | |
51 Neutral | 361.39M | -1.91 | -17.99% | ― | -7.25% | -395.48% | |
46 Neutral | 1.48B | -3.25 | 21.04% | ― | 9.42% | 39.83% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
Performance Comparison
RDI
Reading International
1.54
-0.09
-5.52%
AMCX
AMC Networks
8.33
-0.36
-4.14%
CNVS
Cineverse
3.36
2.38
242.86%
CNK
Cinemark Holdings
28.60
1.00
3.62%
MCS
Marcus
15.67
0.84
5.66%
AMC
AMC Entertainment
2.89
-1.66
-36.48%
Reading International Corporate Events
Shareholder MeetingsBusiness Operations and Strategy
Reading International Holds Successful 2024 Annual Meeting
Positive
Dec 10, 2024
Reading International, Inc. held its 2024 Annual Meeting, where stockholders approved an amendment to increase shares under the 2020 Stock Plan, elected directors, ratified the appointment of Grant Thornton LLP as the independent auditor, and approved executive compensation. These decisions are aimed at supporting the company’s liquidity and operational strategies, reflecting Reading International’s commitment to maintaining and enhancing its industry position and financial performance.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.