Hollywood Bowl smashes profit expectations despite living costs crisis
Hollywood Bowl, the UK’s biggest tenpin bowling operator, has increased annual revenues and profits to well above pre-pandemic levels and believes its value entertainment will continue to appeal to families cutting back on household spending.
The company, which claims to be cheaper than its rivals, said the ability of a family of four to play for less than £22 would continue to make it attractive during the cost of living crisis.
“Although our customers are undoubtedly facing a number of challenges, I firmly believe that our great value for money offer will remain very attractive to families looking for high quality, affordable leisure experiences to enjoy together,” Stephen Burns, the chief executive of Hollywood Bowl, said.
The chain, which operates in the UK and Canada, said like-for-like revenues grew by more than 28% to £185m in the year to 30 September compared with the same period in 2019 before the coronavirus pandemic.
The UK, where it operates under the Hollywood Bowl and Puttstars brands, reported revenues of £178m in its latest financial year, compared with £72m in 2021 and £130m in 2019.
Annual profits, which the company said would exceed market expectations, were also up more than 40% compared with pre-pandemic levels. The company, which reintroduced its dividend this year, said its business was relatively insulated against soaring energy bills and inflation in its supply chain.
UK electricity costs are hedged until the end of 2024 and food and drink account for less than 10% of overall costs. The company has simplified its menus to minimise exposure to food and drink cost inflation.
Staff costs are equivalent to less than a fifth of total revenue and the workforce has benefited from the introduction of a new
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