Hollywood Bowl Delivers Fourth Year of Record Revenue and Boosts Shareholder Returns

FY2025 at a glance – record revenue, rising returns, costs in check

Hollywood Bowl Group has delivered a fourth straight year of record revenue and adjusted EBITDA. Against a tough backdrop for indoor leisure, the Group leaned on pricing discipline, tech, and smart marketing to keep lanes and arcades busy in both the UK and Canada.

Here are the numbers that matter:

Metric	FY2025	FY2024	Change
Revenue	£250.7m	£230.4m	+8.8%
Adjusted EBITDA pre-IFRS 16	£68.4m	£67.7m	+0.9%
Adjusted EBITDA (IFRS 16)	£91.2m	£87.6m	+4.2%
Adjusted PBT pre-IFRS 16	£49.4m	£53.4m	-7.5%
Statutory profit after tax	£34.6m	£29.9m	+15.7%
Adjusted profit after tax	£36.7m	£37.6m	-2.4%
Adjusted EPS	21.51p	21.92p	-1.9%
Total ordinary dividend per share	13.28p	12.06p	+10.1%
Net cash	£15.2m	£28.7m	–

Jargon watch: EBITDA is operating profit before interest, tax, depreciation and amortisation. IFRS 16 is the lease accounting standard that moves rent into depreciation and interest. Like-for-like (LFL) compares performance only of sites that traded in both periods. Constant currency strips out FX swings.

Like-for-like growth was modest, but spend per game did the heavy lifting

Group LFL revenue rose 0.6% and 1.3% on a constant currency basis. The UK grew LFL by 1.1% despite a very hot, dry spring and summer that was unhelpful for indoor leisure. The lever was spend per game, up 9.2% in the UK, helped by dynamic pricing, bigger and better amusements, and upselling through the new booking platform. Management also flag that a family of four can bowl for under £26 at peak times, reinforcing the value pitch.

The flip side is volume. UK LFL game volumes fell 7.5%, a watch-out if weather stays unusually warm or if consumer caution persists. In Canada, LFL revenue was up 3.2% on a constant currency basis, with spend per game up a striking 14.8% to CAD 17.36.

Canada is scaling fast and now 15% of Group revenue

Canada continues to be the growth engine. Total Canadian revenue rose to CAD 70.0m (£38.3m), up 32.8%, with adjusted EBITDA pre-IFRS 16 at a record CAD 10.5m (£5.9m). Since FY2022, the Canadian footprint has tripled to 15 centres, making Splitsville the largest branded operator in the country. The playbook from the UK is clearly transferring: wear-your-own-shoes, bowling by the game, dynamic pricing and refurb-led uplift are all landing well.

Importantly, the investment cadence is measured. Seven refurbishments were completed in Canada, and two new greenfield centres opened in Kanata and Creekside, both trading ahead of expectations. The target remains 35 centres in Canada by 2035.

Expansion and capex – more centres, disciplined spend

Hollywood Bowl opened a record five UK sites and two in Canada, and completed five UK and seven Canadian refurbishments. Total capex was £36.5m, down 30.6% year on year, reflecting the heavy lift in FY2024. For FY2026, capex is guided to £25m to £30m, covering two new UK centres, two in Canada, up to three refurbishments, and ongoing maintenance.

The estate now stands at 92 centres – 77 in the UK and 15 in Canada. The Group remains on track for 130 centres by 2035, split 95 in the UK and 35 in Canada.

Cash generation, buybacks and a clearer dividend policy

Free cash flow improved to £21.2m, with adjusted operating cash flow of £64.1m at a 70.2% conversion. The balance sheet is robust with £15.2m net cash and a fully undrawn £25m revolving credit facility at 1.30% above SONIA.

Shareholder returns stepped up. The dividend policy has been reset to 55% of adjusted profit after tax on a pre-IFRS 16 basis. The proposed final dividend is 9.18p, taking the total ordinary dividend to 13.28p, up 10.1%. A £15m buyback was completed. The RNS highlights £35m returned to shareholders in the year, and elsewhere notes total shareholder returns for FY2025 of £37.4m including the buyback.

Costs and margins – resilient model cushions inflation

The model has some helpful features in an inflationary world. Over 70% of UK revenue is not tied to cost-of-goods inflation, labour costs are less than 20% of UK revenue, and UK energy is hedged through FY2027. Even so, you can see the pressure:

• Administrative expenses rose to £149.5m on an adjusted basis.
• Property costs increased, including UK rent at £20.2m and higher utilities.
• There were £2.3m of impairments, primarily at Putt & Play mini-golf centres.

Adjusted PBT pre-IFRS 16 fell 7.5% to £49.4m, while statutory profit after tax rose 15.7% to £34.6m, helped by lower adjusting items. This IFRS 16 and adjusting items split will continue to create noise in statutory vs adjusted comparisons, but the cash story remains solid.

Technology and pricing – quiet drivers of revenue

The new in-house booking system is now live across the UK and Canada and is already delivering higher conversion and order values. Dynamic pricing and AI-driven upsells have been rolled out to maximise yield. There was also £11m invested in new amusement machines, supporting double digit amusement revenue growth. These levers matter when volumes soften.

What could dent the 2026 story

• Wage and rates headwinds – increases to living and minimum wage and business rates will lift the cost base in FY2026. The effective tax rate is also expected to move back to 25% to 26%.
• Weather sensitivity – the UK saw LFL volumes down 7.5% post a hot summer. Another warm season could suppress footfall.
• Mini-golf performance – further impairment risk is noted around that format, albeit management sees reduced estimation uncertainty after FY2025 charges.

Why this matters for investors

On the positive side, the Group is showing pricing power without losing its value credentials, cash generation is healthy, Canada has real runway, and the balance sheet gives optionality. A progressive dividend aligned to cash earnings and discipline on buybacks will appeal to income-focused holders.

On the cautious side, headline adjusted profits eased, UK volumes slipped, and FY2026 will absorb cost increases from wages and business rates. Execution needs to stay sharp on dynamic pricing, marketing ROI and mix to protect margins.

Outlook – steady growth with a thicker cushion

Management remains confident heading into 2026. Demand for affordable, multi-generational leisure in the UK and Canada looks resilient, and the company has multiple levers to support revenue per visit. The pipeline is secure for four openings in FY2026, the RCF is undrawn, energy is hedged through FY2027, and labour remains a manageable percent of sales.

In short, this is a steady compounder in the competitive socialising space with a growing Canadian kicker. Not flashy, but resilient, cash generative and increasingly well tooled on tech and pricing.

Key definitions

• EBITDA: earnings before interest, tax, depreciation and amortisation.
• IFRS 16: lease accounting that moves rent into depreciation and interest. Pre-IFRS 16 metrics reflect underlying cash rent.
• LFL: like-for-like revenue from centres open in both periods.
• Constant currency: removes foreign exchange effects.
• Spend per game: average customer spend per bowling game, including ancillary spend.