The allure of luxury sofa seating and a menu including parsley and garlic dough balls and hot honey halloumi helped the upmarket cinema chain Everyman bounce back to profit last year.
The group, which started in Hampstead and now has 38 venues across the UK, hailed a post-pandemic return to “business as usual” as admission numbers rose by 70% to 3.4 million last year.
Revenues grew by 61% to £78.8m as film fans flocked to its cinemas to see Hollywood blockbusters including Top Gun: Maverick and Avatar: The Way of Water.
Alex Scrimgeour, the chief executive of Everyman, said: “We were encouraged by strong growth in admissions in the year, marking a return to business as usual. The Everyman proposition feels as relevant as ever.”
The company’s film and entertainment revenues grew by almost 60% to £39.7m, helped by an increase in the average ticket price from £11 last year to £11.29.
Everyman also pointed to the success of its food and drink offering – cinemagoers can enjoy everything from Korean chicken burgers and vegan hotdogs to wine and popcorn at their seats – in helping to transform an operating loss of £2.2m in Covid-hit 2021 into a profit of £400,000.
Food and drink revenues climbed 59% to £32.2m, accounting for 41% of total revenues, helped by average spend per head climbing from £9.07 to £9.34.
“Everyman remains a popular and affordable choice for consumers, combining great film, hospitality and atmosphere to provide an exceptional cinema experience,” Scrimgeour said.
The chain said the number of blockbuster releases fell in 2022, but noted that the Top Gun and Avatar films were among the highest-grossing films of all time, indicating that “the consumer appetite for film remains undiminished”.
The bounce back of Everyman is in contrast to the performance of Cineworld, the world’s second largest cinema chain, which is undergoing a painful restructuring to wipe out a £4bn debt pile in order to exit bankruptcy protection in the US.
Everyman said it was bullish about its prospects, with admission numbers expected to grow again this year. It plans to open six new cinemas a year for the next three years.
However, the chain’s premium positioning means it could face pressure if consumers are forced to cut their budgets.
Russ Mould, an investment director at AJ Bell, said: “Posh cinema operator Everyman Media has a tricky path to navigate through the cost of living crisis. It needs to keep prices low enough that it remains an affordable luxury for a large enough audience. The company’s model is also reliant on people taking advantage of the opportunity to order food and drink to their seats. If people decide they can’t afford to do anything other than rock up and watch the film, that could weigh heavily on profit.”
