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Hollywood Bowl strikes hot streak in first half
British ten-pin bowling operator Hollywood Bowl turned in a "strong" financial performance in the first six months of the year on Wednesday, with revenues increasing on the back of its new-look sites.
Revenues increased 9.3% to £63.6m as result of growing like-for-like sales from its core estate, contributions from new centre openings and a positive impact seen as a result of its refurbishment and rebranding programme.
Hollywood's adjusted EBITDA grew 13.4% across the group to £20.7m, while average centre EBITDA growth increased 6.4% on a like-for-like basis, outpacing revenue growth and "demonstrating the operational leverage inherent" within the firm's business model.
Pre-tax profits jumped 17.4% to £14.6m and earnings per share moved ahead 18.1% to 7.85p each.
In the first half of the year, Hollywood generated free cash flows of £11.0m and its continued positive trading performance further strengthened its balance sheet, reducing net debt by 46.6% to £7.2m.
Hollywood's board reiterated its confidence in the group's future cash flows and declared an interim dividend of 2.03p per share, up 12.8% year-on-year.
Stephen Burns, chief executive of Hollywood Bowl, said, "Hollywood Bowl has produced another strong financial performance this period due to our continued progress in delivering against our strategic goals; the acquisition and opening of new centres that complement our already very high-quality portfolio, creating modern, family-friendly entertainment environments, and our refurbishment programme which has continued to drive organic like-for-like growth through the constant evolution of our customer experience."
As of 0920 BST, Hollywood shares had picked up 0.90% to 225p.