Hollywood Bowl, the UK's largest ten-pin bowling operator, has announced its Interim Results for the six-month period ended 31 March 2022 (H1 FY2022), which shows Food revenue up 8.4% and Drinks LFL revenue up 22.9%.
Operational highlights
Strong pent-up demand driving profit and free cash flow
o LFL revenue growth of 26.8% (versus H1 FY2019), with total revenues of £91.3m
o Group adjusted EBITDA increased 46.8% when compared to H1 FY2019, to £31m
o No government support was taken during the period as the business was able to continue to trade with only a limited impact from Omicron in December 2021
Attractive returns from improving the quality of the estate through new centres, refurbishments and rebrands
o Two new centres; Hollywood Bowl Birmingham Resorts World and Puttstars Harrow opened and performing well
o Two refurbishments completed in Glasgow Springfield Quay and Birmingham Rubery
o AMF Shrewsbury refurbished and rebranded as Hollywood Bowl
o Three centres had solar panels installed
LFL growth driven by improvements to our excellent value for money customer experience
o Games LFL volumes increased 18.1 per cent and average spend per game up 7.5% to £10.52
o Amusement revenue up 43.6% following improvements to games and layouts
o Food revenue up 8.4% as we retained simplified food menu and reduced prices by 10.9% while focusing on quality and speed of service
o Drinks LFL revenue up 22.9% supported by lane ordering technology
Continued investment in technology, enhancing customer offer
o Pins on Strings installed in seven centres with nine more planned before year end meaning a total of 44 sites will be using the new technology
o Enhanced Data Platform improving digital marketing engagement rates
o Further investment in website and booking engine functionality
o Ongoing investment in technology initiatives at or above group's hurdle rate of 30 per cent ROI
Strong start to the year with good progress on growth strategy<,b>
o International expansion with acquisition of Splitsville in Canada, announced separately today
o Hollywood Bowl Belfast opened in April 2022 and two new centres are planned to open within the next six months, with a strong new centre pipeline for Hollywood Bowl and Puttstars brands to meet openings target
o Two refurbishments completed since year end with three further planned - on track to meet guided refurbishment target of 7-10 centres by year end
o Ongoing innovation and investment in technology
o Seven more solar panel installations planned before year end bringing total to 15 centres self-producing 33% of their required electricity
Stephen Burns, Chief Executive, commented, 'We saw exceptional pent-up demand in the first half which, in addition to the investments made in our customer experience, led to us achieving a record first half with four of our top performing months ever.
'I am very proud of the hard work that went into delivering this excellent performance with high customer satisfaction scores and we were delighted to reward our team members as well as now reinstating our dividend.
'The strength of our balance sheet supports our ability to continue to invest in our growth strategy, including growing our portfolio in the UK as well as our entry into the Canadian market.
'While we are aware of the financial challenges many of our customers are facing, we continue to provide a great value for money experience. We are confident that demand will remain resilient as families seek out affordable leisure activities.'