Reading International Reports Third Quarter 2024 Results

Reading International, Inc., an internationally diversified cinema and real estate company with operations in the United States, Australia, and New Zealand, has released its financial results for the third quarter ended September 30, 2024. The company has shown mixed performance across its various segments, reflecting both challenges and areas of growth.

Financial Highlights

For the third quarter of 2024, Reading International reported total revenues of $60.1 million, a decrease from $66.6 million in Q3 2023. The company experienced an operating loss of $0.2 million compared to an operating income of $1.0 million in the same period last year. Adjusted EBITDA also saw a decline, coming in at $2.9 million versus $6.1 million in Q3 2023. Basic loss per share was $0.31, up from a loss of $0.20 in Q3 2023. The net loss attributable to Reading was $6.9 million, compared to a loss of $4.4 million in Q3 2023.

Business and Operational Highlights

The company's cinema segment faced a 10% decline in global cinema revenue, amounting to $56.4 million. Despite this, the Australian cinema division reported its highest third-quarter revenue since Q3 2019, driven by successful movie releases such as "Inside Out 2" and "Deadpool & Wolverine." The U.S. cinema division set a third-quarter record for the highest box office per capita, although it closed four underperforming theaters in the past year to improve long-term profitability.

In the real estate segment, global real estate revenue decreased slightly by 3% to $4.9 million, while operating income increased by 52% to $1.4 million. The Australian real estate division delivered the second-highest third-quarter operating income in the company's history, despite the sale of several properties.

Strategic Initiatives and Corporate Developments

Reading International has been actively managing its debt maturities, modifying four outstanding loans. The company also plans to improve liquidity and reduce outstanding debt by selling additional real estate assets, including properties in Pennsylvania, Australia, and New Zealand.

Management's Perspective

Ellen Cotter, President and CEO, expressed confidence in the improved trajectory of the cinema business despite the quarterly results not being as strong as Q3 2023. She highlighted the encouraging holiday movie slate and the company's proactive steps in managing debt and improving liquidity.

Future Outlook

The company is optimistic about the upcoming holiday movie releases, which are expected to boost revenues. Additionally, the recent rate cuts by the U.S. Federal Reserve Bank are anticipated to reduce overall interest expenses in the short term.

SEC Filing: READING INTERNATIONAL INC [ RDI ] - 8-K - Nov. 14, 2024