Reading International Posts Strongest Q2 Performance in Six Years

Reading International Inc (RDI), an entertainment company operating cinema and real estate assets across Australia, New Zealand, and the US, reported its strongest second quarter performance in six years. Consolidated revenue reached $66.9 million, a 11% increase from last year, mainly driven by strong movie slates in Australia and improved live theater performances in the US.

The company's global cinema revenue was $63 million, an 11% jump from the same period last year, with the highest quarterly result for this segment since the fourth quarter of 2019. In Australia, cinema revenue hit a record high at $30 million, a 31% increase in both local currency and US dollars.

Despite a 3% decline in US cinema revenue due to theater closures and weaker art-house titles, global operating income grew by 159% to $7.5 million. Global adjusted EBITDA increased by 79%, reaching $11.3 million. The company's average ticket price (ATP) in Australia reached AUD 16.89, a record high for the Australian circuit.

Management emphasized their strategy of selective asset monetization to reduce debt while reinvesting in core cinema assets. They have identified a preferred residential developer for the Cinema 1,2,3 property in New York and expect a contract sale to be executed shortly with a closing in early Q4.