Hollywood Bowl Group Plc · LSE:BOWL
Hollywood Bowl — H1 2025 Earnings Presentation
25 slides from Hollywood Bowl's earnings presentation, May 29, 2025
Slide 1: Half Year Results FY2025
Hollywood Bowl Group plc Half Year Results FY2025
Slide 2: Agenda
Agenda Stephen Burns Laurence Keen Chief Executive Officer Chief Financial Officer • H1 FY2025 overview • H1 FY2025 financial review • H1 FY2025 operational highlights • FY2025 financial outlook • Outlook 2
Slide 3: Record H1 performance
Record H1 performance Record H1 revenue Record H1 EBITDA Group £129.2m £38.8m EBITDA pre-IFRS 16 +8.4% vs H1 FY2024 +8.8% vs rebased1 H1 FY2024 New and refurbished Efficient balance sheet centres performing well supports future growth 5 new centres (UK 3, Canada 2) £22.7m net cash position 6 refurbi
Slide 4: Financial review
© Financial review
Slide 5: Record H1 revenue driven by LFL growth and new openings
Record H1 revenue driven by LFL growth and new openings UK total revenue growth of 4.7% Canada total revenue growth of 40.8%* • Spend per game up 6.3% • LFL centre revenue growth of 3.7% • Games played down 4.5% • Unseasonal weather over “Family Weekend” • Easter / leap year: negative LFL impact of
Slide 6: EBITDA growth on rebased H1 FY2024 of 8.8%
EBITDA growth on rebased H1 FY2024 of 8.8% EBITDA comparative impacted by H1 FY2024 one offs EBITDA growth driven through new openings • Business rates refunds of £1.1m • LFL estate has absorbed all inflation • Impact of Surrey Quays closure and Edge Lane £0.9m • UK new centres added £2.2m EBITDA •
Slide 7: Group financial performance
Group financial performance • Total revenue up 8.4% on H1 FY2024 (£m) Movement vs H1 FY2025 H1 FY2024 H1 FY2024 Revenue 129.2 119.2 +8.4% • Gross profit margin 83.0% in line with management expectations Gross profit on cost of goods sold 107.3 99.4 +8.0% »UK GP margin at 84.2%, up 30bps Gross profit
Slide 8: Well positioned against cost inflation
Well positioned against cost inflation UK labour to revenue ratio of less than 20% • NLW payroll +6.9% • National insurance + 30% (c.£1.2m annualised) Business rates • Increase of 4.0% Electricity costs hedged to end FY2027 at FY2025 level • 33 solar installs Canada inflationary impact lower than UK
Slide 9: Reinvesting free cash flow to grow the business
Reinvesting free cash flow to grow the business Expansionary (£m) H1 FY2025 H1 FY2024 New centres (target: 19% ROI): 3 in UK and 2 in Canada opened in H1 FY2025 Returns in line with expectations New centres (net) 10.1 4.6 Maturity curve equates to more EBITDA in next 12 months Refurbishments 4.1 5.7
Slide 10: Focus on profitable growth and shareholder returns
Focus on profitable growth and shareholder returns Policy H1 FY2025 Maintenance capital £5.8m maintenance capital Investments in Transformational refurbishments £4.1m refurbishments profitable growth New centres and acquisitions £10.1m new centres Dividend returned since IPO* (37.7% of IPO share pri
Slide 11: FY2025 outlook
FY2025 outlook Continued revenue Well positioned growth against inflation Growth in UK and Canada 70% of revenue not subject to cost inflation New centre openings in UK and Canada < 20% UK payroll ratio Continued investment Continued profitable in the estate growth On course for enhanced New centre
Slide 12: Operational highlights
C operational highlights
Slide 13: UK - Hollywood Bowl differentiated in a growth market
UK - Hollywood Bowl differentiated in a growth market Expanding competitive socialising market 1 Bowling remains most popular activity in market 2 • Expansion of solo and combo offer operators • Wide appeal across age groups and family-friendly • Increased access to ex-retail real estate • Price acc
Slide 14: UK - new centres performing well and pipeline strong
UK - new centres performing well and pipeline strong NEW Swindon NEW Preston NEW Inverness • H1 FY2025 3 new centres performing in line with expectations Target 95 • Reading and Uxbridge centres to open before year end • 5 locations signed for pipeline • 4 refurbishments and 1 space optimisation com
Slide 15: UK - enhancing our market-leading customer offer
UK - enhancing our market-leading customer offer +6.3% Spend Per Game Core product Amusements Food and drink Service 95% +11.6% +1.1% Record satisfaction SPG SPG NPS • Pins on Strings rollout • £2.7m invested in new • Simplified menu focused • Investment in training complete machines on value for mo
Slide 16: Canada - excellent growth in first international territory
Canada - excellent growth in first international territory 3x estate 3.1x revenue growth growth 56 15 H1 FY2025 15 centres H1 FY2025* CAD56m 5 18 (FY2022 5 centres) (FY2022* CAD18m) FY2022 H1 FY2025 FY2022 H1 FY2025 3.4x EBITDA % of Group growth revenue 9.5 16% H1 FY2025* CAD9.5m H1 FY2025 16% 9% 2.
Slide 17: Canada - new centres performing well and pipeline strong
Canada - new centres performing well and pipeline strong NEW Kanata NEW Creekside Target 35 Canada centres by 2035 (H1 FY2025: 15 centres) • H1 FY2025 2 new centres performing above expectations • First Canadian centres to replicate Hollywood Bowl concept • Co-located with cinema, casual dining and
Slide 18: Kingston CAD 5m refurbishment outperforming expectations
Kingston CAD 5m refurbishment outperforming expectations LFL revenue +133% EBITDA +303% Payback 3 years Bowling +54% Amusements +500% Food and drink +253% Net Promoter Score +10%pts 18
Slide 19: Canada - investing in the customer experience
Canada - investing in the customer experience +5.4% Spend Per Game Core product Amusements Food and drink Service Wear you CAD 5m+ +10.7% Record own shoes investment SPG NPS • Pins on Strings rollout • New supplier in H2 • Simplified menu • Investment in team underway FY2025 (Namco) introduced train
Slide 20: Group operational excellence
Group operational excellence New customer booking system rolled out Group-wide • Faster experience for customers and team members • Significant reduction in processing and hosting costs • Improved booking journey • Increased conversion and cross sale rates • Exciting roadmap of future developments I
Slide 21: Outlook
Outlook
Slide 22: Outlook
Outlook Strong consumer Market leader with demand for Well insulated differentiated value for money against inflation proposition offer Strong cash Significant Further growth generation and international and investment balance sheet opportunity in UK to fund growth and in Canada shareholder returns
Slide 23: Appendix
Appendix
Slide 24: Reconciliation – Operating profit to EBITDA
Reconciliation – Operating profit to EBITDA £’000 H1 FY2025 H1 FY2024 Operating profit 34,888 34,368 Depreciation 14,906 12,271 Amortisation 556 431 Loss on property, ROU assets, plant and equipment and 20 15 software disposal Exceptional costs / (income) excluding interest (667) 1,197 Group adjuste
Slide 25: Historical dividend returns
Historical dividend returns 14 12 10 Pence per share 8 6 4 2 Covid impacted period 0 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Ordinary dividend Special dividend Buyback 25