Latest news with #amusement
CTV News
6 days ago
- Entertainment
- CTV News
Quebec's travelling carnivals, a summer staple for generations, continue to captivate
People wander around the Fun Show Amusement, a travelling carnival, in Laval, Que., on Wednesday, July 9, 2025. (The Canadian Press/Christinne) Bright colourful rides, skill-testing games with a stuffed animal prize, and copious amounts of sticky cotton candy are all hallmarks of the travelling carnival circuit, and are deeply rooted in the imagination of Quebecers who've been able to experience them. The travelling midways, which temporarily set up shop in shopping centre parking lots or wherever else they can find space, have been part of the Quebec landscape for decades. The people who bring on the fun say they intend to be here for years to come. 'We never end up in the red, business is going well,' says Véronique Vallée, co-owner of Beauce Carnaval, the oldest of two such companies. Some seasons — like this year with a cold and rainy April and May — are more difficult than others, she said. 'We lost nine Saturdays at the beginning of the year,' she said. 'That hurts. 'But when people see that the weather will be nice on Friday or Sunday, they adjust.' She and her two brothers are the third generation to operate the ferris wheels of Beauce Carnaval, founded in 1953 by their grandfather, Florian. The company operates two units that travel each year from the Côte-Nord to Abitibi, Outaouais, Montérégie, Estrie, and the Lower St-Lawrence region — passing through their home base of the Beauce, south of Quebec City, and everywhere in between. The newer company, Fun Show, also has two units on the road, but does not venture as far. Still, it covers a vast territory that extends from the Laurentians to the Eastern Townships to the capital region, passing through Central Quebec. Founded 19 years ago, Fun Show is a financially demanding business, says Sylvie Larivière, sister and right-hand woman to founder Mario Larivière. 'People have no idea about the costs of operation, repairs, maintenance and moving,' she said. 'We are 100 per cent self-sufficient: we provide our own electricity with generators, and diesel is a fortune.' There are other expenses — renting a vast lot, paying employees, housing them and insurance. It requires a solid financial footing. The weather was a problem to begin the season, but the company has since recovered, she said. The company has only lost money in one year in its almost 20-year history. Mario Larivière built Fun Show from the ground up, his sister said. 'He bought a few used rides, an investor who was kind enough to help him financed him and he worked hard,' she said. 'He was already good at mechanics and construction (and) the old rides were mechanical. 'But today, there are a lot of electronics, and it's not the mechanics that break anymore; it's always the electronics.' Véronique Vallée and her two brothers essentially grew up at the fair. 'When we finished school, we would come and spend our summers at the carnival,' Vallée said. 'My two brothers and I all studied in other fields and all three of us returned to the family business.' Both Fun Show and Beauce Carnaval employ around 100 people, a figure that can increase, as can the number of rides at major agricultural fairs if customer activity becomes more intense. It's a tough but rewarding job, Vallée said. 'It's difficult to recruit because people are on the road for six months. They don't see their families, they don't stay at home, they don't have Saturdays and Sundays off to go to the beach,' Vallée said. 'That's what characterizes this job: to go away, to be a vagabond for six months.' Since 2018, Beauce Carnaval has employed 34 seasonal workers from Mexico who've helped recruit each other over time. 'They have a great mutual support between them. It's really a great team and when they're here, they spread that to others,' Vallée said. On the Fun Show side, unit manager René Caron said recruiting isn't too hard as veterans return year after year and bring their friends with them. What attracts them, he said, is the feeling of having found a family. 'Many don't have a family, many don't have a fixed home. So they come here for the summer and the family atmosphere,' Caron said. 'They leave in the fall, but sometimes they go and live together in pairs or threes. They come here to build bonds.' Workers say they are passionate about carnival living. In particular, all point to the excited, happy faces of youth getting to partake as a major plus. Robert Gobeil and Sylvain Roy met at the Beauce Carnaval site in Victoriaville, Que. 'We love everything in general,' said Gobeil about his job. 'We're here to entertain people, what's better than entertaining people? I chose this job because we wanted to be able to work all summer and be down south in the winter.' Gobeil heads south in his motorhome in October and returns in April. He briefly retired after the COVID-19 pandemic, but was drawn back to carnival life. Sylvain Roy, on the other hand, loves winter and snowmobiling during the off-season. He, too, left the showman's life in 2009, but soon came back. 'When it's in your blood, you come back,' Roy said. 'I love it: Beauce Carnival is a family. We're a family at home, but when we're here, we have a family here too.' By Pierre Saint-Arnaud This report by The Canadian Press was first published Aug. 2, 2025.
Yahoo
02-07-2025
- Business
- Yahoo
Rolling up with Lucky Strike
Lucky Strike Entertainment Corp. is an operator of location-based entertainment venues across North America. Formerly known as Bowlero Corp., the company manages over 360 locations and is the world's largest operator of ten-pin bowling centers, with well-known brands like Lucky Strike, Bowlero, and AMF. These venues range from upscale, lounge-style bowling centers with enhanced food and beverage options to more traditional bowling experiences. Beyond bowling, Lucky Strike Entertainment has expanded its offerings to include amusements, water parks such as Raging Waves, family entertainment centers, and attractions like Octane Raceway (Go-Karts). The company also owns the Professional Bowlers Association (PBA), making it a player in sports media. In late 2024, the company rebranded from Bowlero Corp. to Lucky Strike Entertainment to reflect its broader commitment to experiential entertainment. With more than 13,000 bowling lanes, over 12,000 employees, and more than 40 million guests annually, Lucky Strike Entertainment Corp. stands as a force in the North American entertainment industry. Lucky Strike/ Bowlero has a roll-up business strategy. The roll-up business strategy is a consolidation approach designed to create a larger, more efficient, and competitive company by acquiring and integrating multiple smaller businesses within the same industry. Business Model Lucky Strike Entertainment's business model centers on providing a comprehensive entertainment experience by combining bowling, amusements, dining, and events within its diverse portfolio of venues, including brands like Lucky Strike, Bowlero, AMF, and Boomers. The company generates revenue through admissions, food and beverage sales, and event hosting across its upscale and traditional entertainment centers. Growth is driven by strategic acquisitions of underperforming or complementary assets, which are then optimized operationally and often financed through sale-leaseback transactions to maintain capital flexibility. Additionally, Lucky Strike leverages its ownership of the Professional Bowlers Association (PBA) to generate media and sponsorship revenues, further diversifying its income streams. By investing in technology and gamification, the company enhances customer engagement and encourages repeat visits, positioning itself as a leader in the location-based entertainment industry with a focus on experiential offerings and operational excellence. The following chart shows Lucky Strike's revenue segments. Total addressable market Lucky Strike Entertainment identifies its total addressable market (TAM) as exceeding $100 billion for out-of-home entertainment. This figure encompasses the broader location-based entertainment industry, including not only bowling but also amusements, water parks, family entertainment centers, and related experiential venues. The company positions itself as the industry leader within this expansive market, leveraging acquisitions and operational improvements to capture a growing share of this $100 billion+ opportunity Funding Model Lucky Strike Entertainment's funding model is built around a combination of acquisition-driven growth and creative capital management. The company primarily finances its expansion through a self-funding strategy that leverages sale-leaseback transactions: it acquires entertainment venuesoften those with valuable real estateimproves their operational performance, and then sells the property while leasing it back, using the proceeds to fund additional acquisitions and investments. This approach allows Lucky Strike to continuously expand its portfolio while maintaining capital flexibility. In addition to sale-leasebacks, Lucky Strike secures financing through a mix of credit facilities, term loans, and private investments. Recent examples include a $150 million incremental term loan secured in December 2024 for general corporate purposes and potential acquisitions5, as well as previous financing rounds involving revolving credit lines, subordinated notes, and equity investments from institutional lenders. This multi-pronged funding strategy enables Lucky Strike to refinance debt, support new location development, and pursue opportunistic growth across its entertainment brands. Growth Revenue and EBITDA has grown rapidly as the company rolls up locations. Revenue has grown by a CAGR of 17.87%over the last 5 years and EBITDA per share by over 30% CAGR. Most of this is due to acquisitions. Same store sales growth has been between 4 to 5% annually. The location based entertainment industry is highly fragmented with mostly small business operators. This gives Lucky Strike a long growth runway as it consolidates a fragmented industry. Recent Results For the quarter ended March 30, 2025, net income was $13.3 million, down from $23.8 million in the prior year. For the nine months ended March 30, 2025, net income was $64.7 million, a significant improvement from a loss of $21.4 million in the prior period. Major adjustments included substantial interest expense ($49.4 million for the quarter; $146.9 million for nine months), high depreciation and amortization ($40.7 million for the quarter; $117.8 million for nine months), and share-based compensation, which increased year-over-year. The result also reflects the impact of changes in the value of earnouts, which were a large negative adjustment in 2025, reducing Adjusted EBITDA by $18.9 million for the quarter and $87.5 million for nine months, compared to positive adjustments in the prior year. After accounting for all adjustments, Adjusted EBITDAa key measure of operating performancewas $117.3 million for the quarter (down from $122.8 million in the prior year) and $279.0 million for the nine months (virtually flat year-over-year). This indicates that while net income fluctuated due to non-operational items, the company's underlying earnings power remained stable, with Adjusted EBITDA showing only a slight year-over-year decrease for the quarter and almost no change for the nine-month period. The following charts shows the progression of Lucky Strike's revenue per share and Operating Income per share progression. The company is also now profitable of a GAAP Earnings per share basis. PE (ttm) is 9, Forward PE is 32. Debt Lucky Strike carries a lot of debt but more than half the liabilities are operational leases. Total Long-Term Debt: $1.273 billion (net of unamortized financing costs and current maturities). Total Liabilities: $3.28 billion, including deferred taxes and operational obligations. Debt-to-Equity: Negative (-37.99) due to accumulated deficit, reflecting aggressive growth financing. Effective Interest Rate on Debt: 7.83% (ttm). Lucky Strike Entertainment's debt structure is characterized by a mix of secured term loans, revolving credit facilities, and strategic interest rate hedges. Here's a breakdown of key components based on the latest financial data: First Lien Term Loan Principal: $1.282 billion (as of March 30, 2025) Maturity: February 8, 2028 Interest Rate: Variable (Adjusted Term SOFR + 3.50%), currently 7.82% Repayment: Quarterly installments of $3.255 million Recent Amendment: A $150 million incremental term loan secured in December 2024, increasing quarterly payments from $2.875 million. Warning! GuruFocus has detected 4 Warning Signs with LUCK. 2. Revolving Credit Facility Commitment: $335 million (expanded by $50 million in August 2024) Maturity: December 15, 2026 Utilization: Reduced by $22.4 million in standby letters of credit. 3. Other Equipment Loans Outstanding: $12.9 million (fixed rate of 6.24%, maturing August 2029) Leverage Ratio: Must not exceed 6.00:1.00 if Revolver utilization exceeds 35% of commitment. Strategic Approach Lucky Strike employs a self-reinforcing funding model: Sale-Leasebacks: Monetize real estate from acquired venues to fund new acquisitions. Refinancing Flexibility: Use amendments to optimize terms without triggering gains/losses. Hedging Focus: Collars minimize interest volatility while allowing upside if rates fall below floors. Insider Trading Key insiders including the CFO and CEO have being buying the stock on weakness over the past few month. This indicates the stock is undervalued. The company has also been buying back its stock. Dividends. Lucky Strike pays a divided with a current of yield 2.39%. Conclusion Lucky Strike's business strategy of rolling up a fragmented industry dominated by small players is interesting. It is using creative financial strategies to bring economies of scale to location based entertainment industry. This is noteworthy given the relative decline of movie theaters as go to places for family and friends. It is upgrading neighborhood bowling alleys to offer more upscale food and beverages as well attached video game arcades to keep the kids busy while Mom, Dad and friends bowl. Apart from bowling the company is now expanding into Waterparks and Go-Kart neighborhood destinations. Lucky Strikes rapid growth and creative self funding model as well as its long growth runway gives investors a substantial opportunity for value creation. This article first appeared on GuruFocus. Sign in to access your portfolio
Economy ME
12-06-2025
- Entertainment
- Economy ME
Saudi Arabia's entertainment market to reach $6.1 billion by 2033: Report
Saudi Arabia's entertainment and amusement market is expected to reach $6.10 billion by 2033, up from $2.46 billion in 2024, with a CAGR of 10.61 percent from 2025 to 2033, a new report found. The market is mostly being driven by the growing technical innovations, particularly in virtual reality and augmented reality, which have completely changed how consumers enjoy entertainment. Technological revolution fuels growth in leisure and entertainment The Saudi Arabia Entertainment and Amusement Market Size and Share Analysis – Growth Trends and Forecast Report 2025-2033 also revealed that the leisure and entertainment sector in the Kingdom is thriving due to a variety of interconnected reasons. This sector has been heavily influenced by technological revolutions. The high application of virtual reality, augmented reality and high-definition monitors has enabled people to experience entertainment in ways not previously imagined. Besides enhancing quality materials, such technologies have created the demand for immersive experiences, reaching more people. In addition, customers' increased disposable income has greatly contributed to the growth of the industry. Individuals are keen on investing in entertainment alternatives that promise unique and memorable experiences. This has led businesses in the entertainment sector to continuously come up with innovative concepts and offering broad spectrums of services like live events, theme parks and streaming platforms. In addition, the Saudi Arabian market is expected to be fueled by the increasing use of the internet and smartphones, which have generated new media and platforms for entertainment. Key factors driving entertainment market's surge Saudi Arabia's entertainment sector is being driven by a variety of key factors. Facilities are evolving rapidly due to large-scale construction and investment activities across the Kingdom. To establish an ultra-luxury tourism and entertainment hub, the development environment includes several mega-projects, including the Red Sea Project that spans 28,000 square kilometers and includes an archipelago of over 90 islands. Examples such as NEOM, a $500 billion investment to develop a future city with entertainment districts, indicate the scale of infrastructure investment in the Kingdom. With over 60 percent of the population below the age of 34, Saudi Arabia's predominantly young demographic makeup is the prime force behind the leisure and amusement industry in the country. Saudi consumers spend 6.2 percent of their income on leisure and entertainment activities, higher than the average U.K. household expenditure of 4.2 percent, which suggests that the young population has a significant appetite for culture, sports and entertainment. Finally, a number of important projects under Vision 2030, which aims to diversify the economy away from reliance on oil, demonstrate the Saudi government's commitment to growing the entertainment industry. The lifting of the 35-year cinema ban in December 2017 was a historic ruling that created previously unheard-of chances for regional and foreign businesses to contribute to the growth of the domestic entertainment sector. In order to facilitate and regulate entertainment activities across the Kingdom, the government has established specialized organizations such as the General Entertainment Authority (GEA). Read: Oman unveils 2025 tourism plan to boost recreational offerings, elevate non-oil sector growth Challenges emerge amid booming growth The entertainment industry in Saudi Arabia faces several regulatory and administrative challenges, such as intricate licensing procedures, protracted approval periods and content limitations that necessitate cautious handling. While businesses must adhere to stringent local restrictions regarding public gatherings, entertainment content and safety requirements, the requirement for government permissions for new initiatives and events might cause delays. Both domestic and foreign businesses wishing to enter the market face obstacles due to these regulatory complications and a lack of transparent, efficient processes. Saudi Arabia's entertainment and amusement market also faces difficulties due to its reliance on tourism. Geopolitical unrest, impediments to international travel, or unfavorable opinions about safety can all impact tourism, which can affect amusement and entertainment industry profits. The demand for theme parks, resorts and events is also impacted by shifting worldwide travel preferences. The report notes that the industry must broaden its clientele for amusement and entertainment attractions to secure long-term success by fostering robust domestic demand in addition to foreign travel.
