Comfortable sofa seats and a menu of pizzas, wine and hot honey halloumi have helped profit grow at premium cinema chain Everyman, while lower-priced rivals struggle.
CEO Alex Scrimgeour hailed the success of the company, which started in Hampstead and has 14 cinemas in London, saying its proposition “feels as relevant as ever”. He added that it was looking to add more sites, both organically and with acquisitions.
“We were encouraged by strong growth in admissions in the year, marking a return to business as usual,” he said. “Everyman remains a popular and affordable choice for consumers, combining great film, hospitality and atmosphere to provide an exceptional cinema experience.”
Revenue jumped 60.8% to £78.8 million, while profit grew by 64.8% to £14.5 million, thanks in part to food and drink spend rising to £9.34 per person.
“The independent cinema business has outperformed its rivals with superior food and drink, comfortable sofa seats and high-end screens which has helped drive numbers up,” Gowling WLG leisure partner Jocelyn Paulley said.
Everyman’s success comes in stark contrast to market leader Cineworld’s recent struggles. That brand filed for bankruptcy protection last year, eventually agreeing to a restructuring deal in which creditors take full control of the business.
“Although other cinema chains are struggling, the experience Everyman offers has made it worthwhile for customers,” Paulley said.
She added that a pipeline of high-grossing new releases mean the business is set up well for the rest of the year.
However, Russ Mould, investment director at AJ Bell, was less optimistic. He warned that Everyman could be hit hard by the cost-of-living crisis as customers cut back spend.
“Posh cinema operator Everyman Media has a tricky path to navigate through the cost-of-living crisis,” he said.
“It needs to keep prices low enough that it remains an affordable luxury for a large enough audience, while at the same time maintaining the quality and standards which help incentivise film-lovers who can stream most films they want at the click of a button to go out and pay to see the latest releases on the big screen.
“The company’s model is also reliant on people taking advantage of the opportunity to order food and drink to their seats. If people decide they can’t afford to do anything other than rock up and watch the film that could weigh heavily on profit.”
Shares are up by 1% to 66.1p.
