Q2 2024 Reading International Inc Earnings Call (Pre Recorded) Transcript
Key Points
- Reading International Inc (RDI) saw a significant increase in food and beverage spend per patron (F&B SPP) in both the US and Australia, with a 43% increase in the US and a 56% increase in Australia compared to Q2 2019.
- The company experienced strong box office performance for certain films, such as 'Inside Out 2,' 'Despicable Me 4,' and 'Deadpool & Wolverine,' which contributed to a positive momentum in June, July, and early August.
- Reading International Inc (RDI) has been proactive in managing its debt, extending maturity dates, and securing new financial arrangements, such as the extension of the Bank of America loan and the negotiation of a bridge facility with National Australia Bank.
- The company is actively working on monetizing non-core real estate assets to bolster liquidity and reduce debt, including properties in Australia, New Zealand, and the US.
- Reading International Inc (RDI) has seen success in increasing transaction sizes through F&B ordering via websites and apps, and is developing a paid rewards program in the US to further enhance customer engagement and revenue.
- Reading International Inc (RDI) experienced a 28% decrease in total revenue for Q2 2024 compared to Q2 2023, primarily due to the impact of the 2023 Hollywood Strikes and a weaker film slate.
- The company reported a net loss of $9.3 million for Q2 2024, a significant increase from the $2.8 million loss in the same period of the prior year, driven by weakened cinema and real estate performance and increased interest expenses.
- Global cinema revenue decreased by 30% compared to Q2 2023, and the company continued to experience operating losses, with a segment operating loss of $324,000 for Q2 2024.
- Reading International Inc (RDI) faced challenges in its US cinema operations, with a 37% decrease in revenue and an operating loss of $1.1 million for Q2 2024, partly due to the closure of underperforming theaters.
- The company's real estate revenue also saw a decline, with a 4% decrease in global real estate total revenue for Q2 2024 compared to Q2 2023, impacted by the sale of properties and the dark period of the Orpheum Theater.
Cool. Thank you for joining Reading International's earnings call to discuss our 2024 second-quarter results. My name is Andrzej Matyczynski, and I am Reading's Executive Vice President of Global Operations. With me as usual are Ellen Carter, our President and Chief Executive Officer; and Gilbert Avanes, our Executive Vice President, Chief Financial Officer, and Treasurer.
Before we begin the substance of the call, I will run through the usual caveats. In accordance with the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995, certain matters that will be addressed in this earnings call may constitute forward-looking statements. Such statements are subject to risks, uncertainties, and other factors that may cause our actual performance to be materially different from the performance indicated or implied by such statements. Such risk factors are clearly set out in our SEC filings. We undertake no obligation to publicly update or revise any forward-looking statements.
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