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RI

READING INTERNATIONAL INC (RDI)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered a material inflection: revenue rose 29% year over year to $60.38M and operating income reached $2.89M (best since Q2 2019), with EBITDA of $6.29M aided by a $1.87M gain on sale of Cannon Park; basic EPS improved to a loss of $0.12 versus a loss of $0.57 in Q2 2024 .
  • Against consensus, revenue modestly beat ($60.38M vs $59.39M*) while EPS missed (actual -$0.12 vs -$0.057*), noting only one covering estimate for each metric; coverage remains thin and increases estimate volatility *.
  • Cinemas drove outperformance: global cinema revenue +32% YoY to $56.78M and cinema operating income swung to $5.45M (from -$4.61M), supported by blockbuster slates and record ATP and F&B per-patron metrics across regions .
  • Balance sheet improved: gross debt fell 14.4% YTD to $173.4M, aided by asset monetizations (Wellington and Cannon Park) and lender extensions; cash stood at $9.1M at quarter-end .
  • Near-term setup: management expects Q3 to slow after a strong July, but Q4’s slate (TRON: Ares, Wicked: For Good, Zootopia 2, Avatar: Fire and Ash) is positioned as a catalyst; leasing progress at 44 Union Square and continued debt reduction are additional potential stock drivers .

What Went Well and What Went Wrong

What Went Well

  • Best second-quarter operating income since Q2 2019 and positive EBITDA, driven by both cinema and real estate segments; cinema revenue +32% YoY and cinema operating income +218% YoY .
  • Record commercial KPIs: highest-ever ATP in Australia and New Zealand; US ATP reached its highest second quarter; F&B spend per patron set records in all three regions (US $9.13; Australia A$8.26; New Zealand NZ$7.14) .
  • Strategic deleveraging: sale of Cannon Park for AU$32M and Wellington (NZ$38M) funded paydowns across NAB, Westpac, and Bank of America; total gross debt decreased by $29.3M from year-end 2024 .

What Went Wrong

  • EPS missed consensus (limited coverage) as the quarter remained loss-making (net loss attributable to RDI of $2.67M); FX headwinds from weaker AUD/NZD reduced reported US$ results with 47% of revenue ex-US * .
  • Real estate revenue declined $0.36M YoY to $3.60M due to prior monetizations, though operating income rose; ANZ real estate revenue -14% (Australia) and -40% (New Zealand) YoY .
  • Q3 outlook flagged as softer post-July strength, tempering sequential momentum before an expected Q4 slate-driven rebound .

Financial Results

Quarterly Trend (oldest → newest)

MetricQ4 2024Q1 2025Q2 2025
Total Revenue ($USD Millions)$58.6 $40.17 $60.38
Operating Income (Loss) ($USD Millions)$1.50 $(6.89) $2.89
EBITDA ($USD Millions)$6.81 $2.89 $6.29
Net Income (Loss) Attributable to RDI ($USD Millions)$(2.24) $(4.75) $(2.67)
Basic EPS ($USD)$(0.10) $(0.21) $(0.12)

Margins (derived from reported figures; oldest → newest)

MetricQ4 2024Q1 2025Q2 2025
EBIT Margin %2.6% -17.2% 4.8%
EBITDA Margin %11.6% 7.2% 10.4%
Net Income Margin % (Attributable to RDI)-3.8% -11.8% -4.4%

Q2 2025 vs Prior Year (YoY)

MetricQ2 2024Q2 2025Change
Total Revenue ($USD Millions)$46.81 $60.38 +29.0%
Operating Income (Loss) ($USD Millions)$(7.69) $2.89 +$10.58M
EBITDA ($USD Millions)$(3.57) $6.29 +$9.86M
Net Income (Loss) Attributable to RDI ($USD Millions)$(12.81) $(2.67) +$10.14M
Basic EPS ($USD)$(0.57) $(0.12) +$0.45

Q2 2025 Actuals vs Estimates

MetricConsensusActual
Revenue ($USD)$59.39M*$60.38M
Primary EPS ($USD)$(0.057)*$(0.12)
# of Estimates (EPS / Revenue)1 / 1*—

Values retrieved from S&P Global.*

Segment Breakdown

Segment Revenue ($USD Thousands)Q1 2025Q2 2025
Cinema – United States$18,295 $30,258
Cinema – Australia$15,682 $22,909
Cinema – New Zealand$2,427 $3,615
Total Cinema$36,404 $56,782
Real Estate – United States$1,587 $1,700
Real Estate – Australia$3,015 $2,741
Real Estate – New Zealand$243 $212
Total Real Estate$4,845 $4,653
Inter-segment Elimination$(1,080) $(1,057)
Total Segment Revenue$40,169 $60,378
Segment Operating Income (Loss) ($USD Thousands)Q1 2025Q2 2025
Cinema – United States$(3,146) $2,292
Cinema – Australia$(974) $2,920
Cinema – New Zealand$(355) $241
Total Cinema$(4,475) $5,453
Real Estate – United States$143 $89
Real Estate – Australia$1,545 $1,338
Real Estate – New Zealand$(94) $52
Total Real Estate$1,594 $1,479
Total Segment Operating Income (Loss)$(2,881) $6,932

KPIs and Balance Sheet

KPIQ2 2025
ATP – US ($)$13.44
ATP – Australia (A$)A$16.34
ATP – New Zealand (NZ$)NZ$14.70
F&B SPP – US ($)$9.13
F&B SPP – Australia (A$)A$8.26
F&B SPP – New Zealand (NZ$)NZ$7.14
Screens / Theatres469 / 58
ANZ Real Estate Occupancy99%
ANZ Tenants59
Cash and Equivalents ($USD)$9.07M
Total Gross Debt ($USD)$173.4M

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue cadenceQ3 2025Not provided“Expect Q3 to slow significantly” Lowered (qualitative)
Revenue cadenceQ4 2025Not providedAnticipate strong slate (TRON: Ares, Wicked: For Good, Zootopia 2, Avatar: Fire and Ash) Raised (qualitative)
Debt/Liquidity2025Ongoing lender extensionsMultiple facility extensions and paydowns (Emerald Creek to Nov-2026; BofA to May-2026; Santander to Jun-2026; NAB bridge repaid post Cannon Park) Strengthened
Tax/Policy2025N/AUS tax law changes (July 2025) not expected to be material to 2025 financials Maintained (neutral)

No formal numeric guidance (revenue, margins, OpEx, OI&E, tax rate) was provided; commentary was qualitative on release cadence and financing.

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Film slate and box officeQ4: holiday slate drove strong results; Q1: softer slate, expect improvement starting April–May Q2: blockbuster slate (Minecraft, Sinners, Lilo & Stitch, Mission: Impossible) exceeded expectations; Q3 expected to slow; Q4 lineup strong Improving into Q4
Pricing & F&BRecord F&B SPP across regions; loyalty revamp in late Q4 2024 Record ATP and F&B SPP; membership programs expanding; US weekday F&B discount program; merch contribution ~$0.5M Structural enhancement
Occupancy costsRecalibration with landlords to reflect post-pandemic economics Continued negotiations to reduce occupancy costs Ongoing relief focus
Real estate monetizationCulver City sold; Wellington closed Jan 2025; Cannon Park under option; Williamsport being marketed Cannon Park closed (AU$32M); debt reductions; 44 Union Square leasing interest (non-office vs office LOIs) Active disposition/lease-up
FX headwindsAUD/NZD weakness hurt reported results AUD -2.7% / NZD -1.9% YoY; ~47% revenue ex-US Persistent headwind
Lending relationshipsMultiple extensions with NAB, BofA, Santander, Emerald Creek Additional extensions and modifications; NAB longer-term extension in progress Improving terms
Regulatory / seismicWellington seismic upgrade plan with new owner Courtenay Central seismic upgrade targeted 2026; cinema fit-out thereafter Execution milestone 2026

Management Commentary

  • “Our improved performance this quarter underscores our continued confidence in long term future of our Company…The success of these engaging, high-quality and well-marketed movies reinforce our confidence in the appeal of the theatrical experience.” — Ellen Cotter, CEO .
  • “Our global Real Estate division also delivered strong results…closing the sale of our real property assets in Cannon Park, Australia for AU$32.0 million and used the funds to decrease our overall debt position.” — Ellen Cotter .
  • “Consolidated revenue…increased by $13.6 million…These improved results were primarily due to improved cinema and real estate performance, the $1.0 million reduction in interest expense and the $1.8 million gain on sale of our Cannon Park property.” — Gilbert Avanes, CFO .

Q&A Highlights

  • Rotorua asset status: removed from held-for-sale given challenging NZ market; continues to generate cash flow; retained as part of circuit .
  • NAB facility: management working toward a longer-term extension in the next few months; longstanding banking relationship .
  • Courtenay Central (NZ) seismic timing and refurbishment: upgrade targeted for 2026 by new owner; RDI plans premium recliners/screens; several million dollar fit-out; reopening targeted late 2026/early 2027 (no assurances) .
  • Investor relations events: evaluating non-deal roadshows, conferences, and an IR day as recovery trajectory becomes clearer .

Estimates Context

  • Q2 2025 revenue modestly beat consensus ($60.38M vs $59.39M*), while EPS missed (actual -$0.12 vs -$0.057*), with one estimate in each case, indicating limited analyst coverage and higher dispersion risk *.
  • Given strong operational momentum and asset-driven deleveraging, sell-side estimates may need to lift revenue assumptions for Q4 2025 while incorporating gains on asset sales into EBITDA flows and keeping EPS conservative until net losses structurally abate .

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Operational inflection: cinema segment profitability returned with record ATP/F&B metrics, suggesting structurally higher per-capita economics even if attendance normalizes below pre-pandemic levels .
  • Deleveraging progress reduces financial risk and interest burden; continued lender extensions and asset monetizations provide flexibility ahead of anticipated Q4 slate strength .
  • Near-term trading: Q3 slowdown commentary could be a pause; setup into a blockbuster Q4 favors momentum and upside into slate-driven catalysts, particularly if leasing at 44 Union Square lands an anchor .
  • EPS risk persists given net losses; watch FX headwinds and occupancy cost negotiations for margin preservation; estimate coverage thin, increasing headline sensitivity *.
  • Real estate provides ballast and optionality: live theaters improving, ANZ portfolio at 99% occupancy, and pipeline for rail assets; monetization remains an active lever .
  • Strategic focus on loyalty, F&B, premium screens/recliners, and merchandising supports yield improvements independent of traffic cycles .
  • Monitor upcoming milestones: Courtenay Central seismic upgrade timeline, NAB longer-term extension, US theater upgrades, and any Q4 content shifts impacting pacing .