Hollywood Bowl shares jump 10% as consumers prioritise ‘affordable leisure’ over shopping
Shares in Hollywood Bowl soared this morning after the group reported higher sales as consumers opt for affordable fun over shopping.
The FTSE 250-listed firm said demand for ‘affordable, experience-led leisure’ remained healthy, as consumers cut back on ‘discretionary retail spend’.
It came as revenues rose 9.5 per cent to £141.5million for the six months to the end of March, while like-for-like sales rose 2.6 per cent across its UK arm.
Shares in Hollywood Bowl rose 10.96 per cent to 288.5p this morning.
Hollywood Bowl said its ‘record revenues’ in the first half of the year came despite ‘ongoing pressure on household budgets’.
Buoyed: Strong demand for ‘affordable leisure’ over shopping among consumers helped buoy Hollywood Bowl’s bottom line
In the UK, the group saw a ‘modest reduction’ in game volumes, but this was ‘more than offset’ by a higher spend per game.
The average amount that customers spent at its sites, including food, drink and additional games, rose by 7.6 per cent to £12.77 in the UK.
This was a result of ‘modest inflationary price increases, and more add-on sales like VIP lanes and amusements’.
It also pointed to its use of dynamic pricing, which helps to balance lower prices during off-peak periods and higher prices during busier times, helping to improve its ‘revenue quality’.
Stephen Burns, Hollywood Bowl’s chief executive, said: ‘In this uncertain environment, our sector-leading proposition remains accessible and is underpinned by consumer trends supporting demand for affordable leisure.’
The business is eyeing expansion in the UK, with two openings set for the second half of this year and four more next year, aiming to have 95 locations in its portfolio by 2035.
Hollywood Bowl said it was on track to meet its profit forecasts and remained insulated from energy cost increases.
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