29-05-2025
Hollywood Bowl shares fall as sales dented by warm weather
Hollywood Bowl shares fell eight per cent on Thursday after posting its latest results for the six months to 31 March.
The group said the recent spell of warm weather had dented its sales as Britons headed out into the sunshine rather than visiting a ten-pin bowling venue.
Hollywood Bowl said it suffered a 'short-term' hit to its British operations between March and May.
But the group said it remained 'confident' on its outlook for the final six months of the year thanks to action to offset the weather knock, and kept its full-year earnings guidance unchanged.
Despite slower-than-expected revenue growth, Hollywood Bowl upped its interim dividend by three per cent to 4.1p.
Stephen Burns, chief executive of Hollywood Bowl, said: 'The prolonged period of unprecedented dry and warm weather from March to May has had a short-term impact on trading.
'However, we've responded quickly, managing margins and costs while maintaining strong operational performance, which remains as good as it's ever been.
'Looking ahead, we're well positioned for the key summer holiday period.'
Hollywood Bowl said drier weather earlier in the year – between February and late March – played a part in a fall in the number of bowling game bookings during its first half to 31 March, down 4.5 per cent on a like-for-like basis.
The fall was also driven by the timing of Easter and last year's leap year, which gave an extra day of trading, 'as well as the continuing competition from new competitive socialising offerings opening in certain locations', it said.
But it said spend per game rose, helping boost total like-for-like revenues for its British arm by 1.3 per cent in the half-year, with sales in bowling centres up 1.5 per cent.
Pre-tax profits fell 9.4 per cent to £28million on an underlying basis in the six months to 31 March as costs also rose.
Hollywood Bowl said it saw its wage bill increase by £2.6million to £24.9million after minimum wage increases. Employer national insurance contributions have also increased.
The group operates 75 bowling alleys in Britain and 15 in Canada, and wants to increase its 90 locations to 130 by 2030.
It opened three new centres in the first half of the year, with Reading and Uxbridge scheduled to open during the second half of the financial year.
Robinhood analyst Dan Lane, said: 'The attractive dividend and buyback plans might frustrate investors who look at the success so far in Canada and wonder if that cash could be put to good use instead of returning it to shareholders.
'The same goes for the rising dividend – there looks to be a good window of opportunity in North America and all newly opened UK centres are expecting an ROI of 19 per cent. Pumping cash into new sites feels like a better use of the cash pile.'
Hollywood Bowl shares fell 8.37 per cent or 24.78p to 271.22p on Thursday, having fallen over 16 per cent in the last year.
