The cinema group has swung from a loss in H1 16 to profit for the first half of 2017.
Companies: Everyman Media Group PLC
Everyman Media (LON: EMAN) has today put out their interims for H1 17 with positive signs indicating their sharp share price rise since the beginning of the year is likely to continue.
The numbers today are highlighted by a revenue increase of 55% from H1 16 to £18m and EBITDA ballooning 123% to £3.0m (H1 2016: £1.3m). Box office revenue was also up 52% compared to the industry's movement of 10%.
The Group generated a profit for the period of £438,000 compared to their H1 16 loss of £670,000. FY16 profit was £61,000.
One new venue was also opened in the period with a further 9 sites in the pipeline, with shares up over 6% in early morning trading today as a result of the news release.
Despite the good numbers, an interim dividend will not be issued.
Since the Group's IPO in 2013 shares stayed relatively flat until the beginning of 2017 when they began to rise sharply. Today's share price is currently 166p compared to its 99p price in January.
Revenue for Everyman has risen steadily over the past six years, yet margins have suffered. After the Group's first FY net profit last year, consensus expects net profits to continue growing in FY17 and FY18, with these interims only reinforcing the profit forecasts.
EMAN's PE ratio is currently double the industry median - 31x versus 16 respectively, with a market cap of £95m. Clearly, the market is baking in a lot of future growth for Everyman in the coming years as the Group increases their market share.
