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Hollywood Bowl increases dividend as expansion efforts in Canada pay off

Monday, 03 June 2024, 07:36

Hollywood Bowl benefits from its decision to expand to Canada

Hollywood Bowl, owner and operator of bowling alleys in the UK and Canada, has increased its dividend following a double-digit jump in profits.

In its results for the six months ended March 31, 2024, the company said revenue increased 8.1 percent for the period and profit before tax increased 10.5 percent.

Adjusted earnings per share for the period were 13.6 pence, up 6.2 percent from the same period in 2023.

Based on these results, Hollywood Bowl announced an increase in its interim dividend per share by 21.7 percent from 3.27 pence to 3.98 pence.

The majority of the group's growth came from Canada, where the company rapidly expanded its presence. The company reported 46.9 percent revenue growth in the region (the Canadian arm contributed eight percent to overall growth for the period).

At the end of March, Hollywood Bowl announced that it operates 11 centers in the Canadian market, two of which were acquired during the six-month period. Construction of a new center was completed after the interim period, and two additional acquisitions were also completed.

Hollywood Bowl said its “cash-generating business model” helped provide the capital to invest in the portfolio, giving the stadium a “robust net cash balance” of £41.4 million at the end of March (£44.1 million as of March 31, 2023).

Stephen Burns, CEO, said: “We are delighted to have welcomed so many families, friends and colleagues to our centres in the first half of the year. This demonstrates the continued demand for high quality, family-friendly leisure experiences at affordable prices, particularly against a backdrop of higher living costs.”

“I am extremely grateful to our outstanding team members whose hard work has resulted in even longer customer retention times and higher satisfaction scores. We are proud to invest in our team and once again be recognized as a top employer,” added Burns.

The Hollywood Bowl boss continued: “We continue to expect continued modest like-for-like growth, even with a very strong year-on-year comparison, as a result of our customer-focused innovation and our investments in our profitable growth strategy. We are confident about the outlook for the Hollywood Bowl and are confident that we can capitalize on the long-term opportunity to expand our offering to over 130 centers over the next decade.”