Hollywood Bowl Group (LSE:BOWL) shares traded positively on Wednesday, gaining 10% to 286p, as the leisure operator reported H1 interim results showing revenue up 9.5% and announced a 4.52p interim dividend.
Revenue rose 9.5% to £141.5m, group like-for-like revenue grew 2.3%, and group adjusted EBITDA after rent increased 8.9% to £42.2m.
"Looking ahead, we are confident in delivering on expectations for FY26, as customer appeal for our value offer remains robust, and we continue to maintain a tight grip on costs," said Stephen Burns, Chief Executive Officer.
The company reported adjusted profit before tax rose 8.1% to £32.1m; adjusting items of £3.3m (a £2.8m impairment and £0.5m contingent consideration) were excluded, and reported profit after tax fell 5.3% to £19.5m.
It closed the period with net cash of £26m, an undrawn £25m RCF, invested £8.5m of capex in H1 with higher spend planned in H2, and the Board authorised a £5m share buyback alongside the 4.52p interim dividend.
UK revenue grew 9.4% to £118.4m with UK like-for-like up 2.6% and UK spend-per-game up 7.6% to £12.77, while Canadian revenue increased 12.8% to CA$42.9m (£23.2m) with LFL up 0.5% on a constant currency basis and Canada now representing 16% of group revenue.
Management said new and refurbished centres are driving returns, with two UK and one Canadian centre due to open in H2, a target of 95 UK centres by 2035 and an accelerated Canadian target of 35 centres by 2032.
The company highlighted dynamic pricing, AI-enabled marketing, and cost protections, including c.70% of revenues insulated from cost-of-goods inflation and 76% of electricity hedged through to the end of FY29 as supports for margin resilience.
