Hollywood Bowl H1 2026 results: strong revenue growth, but reported profit dips on one-off charges
Hollywood Bowl has delivered a solid first half. Revenue rose to £141.5 million, up 9.5%, while adjusted profit measures also moved nicely higher. That tells you the core business is still in good shape, with customers continuing to spend on affordable leisure.
The slight snag is that the headline reported profit numbers actually went backwards. Reported profit before tax fell to £27.2 million and reported earnings per share dropped to 11.70p. That looks worse than the underlying picture because of £3.3 million of adjusting items, mainly an impairment on an under-performing centre and acquisition-related costs in Canada.
Hollywood Bowl interim results 2026: the key numbers investors need
| Metric | H1 FY26 | H1 FY25 | Change |
|---|---|---|---|
| Revenue | £141.5 million | £129.2 million | 9.5% |
| Like-for-like revenue | 2.3% | 1.6% | +0.7 percentage points |
| Adjusted EBITDA after rent | £42.2 million | £38.8 million | 8.9% |
| Adjusted PBT | £32.1 million | £29.7 million | 8.1% |
| Adjusted EPS | 14.51p | 13.04p | 11.3% |
| Reported PBT | £27.2 million | £28.3 million | (3.9%) |
| Net cash | £26.0 million | £22.7 million | 14.3% |
| Interim dividend | 4.52p | 4.10p | 10.2% |
Like-for-like sales growth shows demand for affordable bowling is holding up
The most encouraging bit here is the 2.3% like-for-like revenue growth. Like-for-like means performance from centres open in both periods, so it strips out the boost from new openings and gives a cleaner read on underlying trading.
In the UK, like-for-like revenue rose 2.6%. Canada managed 0.5% on a constant currency basis, with management blaming heavy snowstorms for some disruption. That feels fair enough, and more importantly it still stayed positive.
Spend per game was strong. UK spend per game climbed 7.6% to £12.77, while Canada rose 9.7% in local currency terms, with spend per game reaching CA$19.10. That suggests Hollywood Bowl is not just getting people through the doors – it is getting more value from each visit through pricing, amusements, food and drink, and add-ons like VIP lanes.
That matters because a bowling trip still looks affordable. The company says a family of four can bowl at peak times for £26 in the UK and CA$32 in Canada. In a squeezed consumer market, that is a strong selling point.
Adjusted profit growth versus reported profit decline: what the difference actually means
This is where investors need to avoid getting tripped up by accounting. Hollywood Bowl’s adjusted PBT rose to £32.1 million, but reported PBT fell to £27.2 million. The gap is mainly explained by £3.3 million of adjusting items.
The biggest item was a £2.8 million non-cash impairment on one under-performing UK centre. Non-cash is important here – it hurts accounting profit, but it does not mean cash left the business in the period. There was also £0.5 million relating to contingent consideration on the Canadian acquisition.
The company also reports figures on a pre-IFRS 16 style basis, replacing lease depreciation and interest with actual property rent. IFRS 16 is the lease accounting rule that can distort comparisons for property-heavy businesses. You do not need to love the jargon, but the key point is simple: on management’s preferred basis, trading improved nicely.
My view: the adjusted performance looks credible, but the impairment is still worth noting. It is a reminder that not every new site will be a winner, especially in competitive locations.
Hollywood Bowl margins, labour costs and inflation: good control, but not perfect
Costs were controlled reasonably well, though not flawlessly. Gross margin slipped from 63.8% to 62.8%, mainly because centre staff costs jumped 18.5% to £29.5 million.
Management pointed to higher National Insurance costs and a National Living Wage rise above inflation, with each adding around £1 million of labour costs. That is a real headwind, and it shows up clearly in the numbers.
Still, there is plenty to like. Around 70% of group revenue is not subject to cost-of-goods inflation, and 76% of electricity needs are hedged to the end of FY29, including 12% from on-site solar. That gives the group better protection than many leisure and hospitality names.
Cash generation, dividend growth and the £5 million buyback strengthen the investment case
Hollywood Bowl finished the half with £26.0 million of net cash and an undrawn £25.0 million revolving credit facility. For a growth business still opening new sites, that is a very healthy position.
Free cash flow before investment came in at £30.0 million, up from £28.4 million. That strong cash generation helped fund the £15.3 million final dividend payment from FY25 and still left the balance sheet in better shape than a year ago.
Shareholders are also getting more cash back. The interim dividend rises to 4.52p, up 10.2%, and the group plans a £5 million buyback programme in H2 FY26. That combination says management is confident and still has financial firepower.
UK and Canada expansion plans give Hollywood Bowl a longer runway for growth
The expansion story is still alive and well. In the UK, the group remains confident in its target of 95 centres by 2035. In Canada, it is now targeting 35 centres by 2032, which is earlier than its original 2035 goal.
Canada looks especially interesting. The business now has 16 centres, and management says the newest sites in Kanata, Creekside and Edmonton are performing well. There is also one more Canadian opening due in H2 FY26, with five planned in FY27.
In the UK, two new centres are due in H2 FY26, and the rebuilt Liverpool Edge Lane site plus Reading have both exceeded expectations. That is encouraging, because new centres are doing a lot of the heavy lifting in revenue growth.
What matters next for Hollywood Bowl shares in H2 2026
- Can the group keep like-for-like growth positive in both the UK and Canada?
- Will labour inflation continue to pressure margins?
- Do the new centre openings land as strongly as recent ones?
- Can Canada become a bigger contributor without upsetting returns?
- Will there be any further impairments on weaker sites?
My verdict on the Hollywood Bowl interim results
This is a good set of results, even if the headline reported profit line looks messy at first glance. Revenue growth, adjusted profit growth, strong cash generation, a higher dividend and a buyback are all signs of a business with momentum.
The negatives are there too. Cost inflation is biting, Canada’s like-for-like growth was modest, and the impairment shows expansion is not risk-free. But overall, Hollywood Bowl looks like it is executing well in a tough consumer environment, helped by a simple but powerful advantage: it still offers a cheap, social night out that plenty of households can afford.
For retail investors, that makes this update reassuring rather than spectacular. Not flashy. Just solid, cash-generative progress with a clear growth runway.
