Hollywood Bowl Shares (LON: BOWL) Rise on Strong Revenue

Hollywood Bowl (LON: BOWL), the UK and Canada's leading ten-pin bowling operator, saw its shares jump over 5.7% today, at the time of writing, following the release of a trading update showcasing record revenues for the financial year ended September 30th (FY2025). However, despite today's surge, the stock remains down -7.04% year-to-date, highlighting the challenges the company has faced amidst broader market volatility.

The headline figures reveal a robust performance, with revenues reaching £250.8 million, an 8.9% increase compared to FY2024. The UK segment contributed significantly, with total revenue up 6.4% to £212.4 million. Canada also delivered strong growth, with revenue up 32.8% on a constant currency basis to CAD 70.0 million (£38.4 million).

Like-for-like (LFL) revenue growth, a key indicator of underlying performance, was positive at +0.6% for the Group as a whole, and +1.3% on a constant currency basis. The UK saw LFL growth of +1.1%, with bowling centres specifically achieving +1.3%. Canada's total LFL growth was +3.2%, with bowling centres at +0.8% on a constant currency basis.

The group anticipates reporting EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) in line with market expectations. A strong balance sheet provides considerable capital flexibility, evidenced by £37 million invested in estate expansion and centre enhancements, the successful completion of a £15 million share buyback, a net cash position of £15.2 million as of September 30, 2025, and an undrawn £25 million revolving credit facility.

The share buyback program underscores management's confidence in the company's financial health and future prospects, returning value to shareholders. The net cash position and undrawn credit facility further solidify Hollywood Bowl's ability to invest in growth initiatives and navigate potential economic headwinds.

Growth Breakdown:

• Expansion: The company strategically opened 5 new centres in the UK and 2 in Canada, expanding its footprint in prime locations.
• Refurbishments: Significant investment in upgrading existing centres, with 5 refurbishments completed in the UK and 7 in Canada.
• Customer Experience: Focus on enhanced customer experiences driving increased dwell time and positive feedback.

CEO Stephen Burns stated: “We are very pleased with our full-year performance, both financially and operationally…We remain confident in the long-term growth opportunities in the UK and Canada.” reinforcing the company’s strategy for continued growth.

While the record revenue and expansion plans are encouraging, one should closely monitor LFL growth and market conditions to assess the sustainability of Hollywood Bowl's performance.