Hollywood Bowl Group (BOWL) shares surged on Wednesday after the ten-pin bowling operator unveiled a new £5 million share buyback, raised its dividend and reported rising sales as consumers continued spending on lower-cost leisure activities despite pressure on household budgets.
The FTSE 250 company saw its shares climb more than 12% to 293.50p in early trading, making it one of the strongest performers in London’s mid-cap index after investors responded positively to improving margins, expansion plans and confidence in full-year expectations.
Revenue for the six months to 31 March rose 9.5% to a record £141.5 million, up from £129.2 million a year earlier, while like-for-like sales growth accelerated to 2.3% from 1.6%. Adjusted pre-tax profit increased 8.1% to £32.1 million, although reported pre-tax profit slipped 3.9% to £27.2 million due to higher costs linked to expansion and investment activity.
Adjusted earnings per share rose 11% to 14.51p, while the interim dividend was lifted 10.2% to 4.52p per share.
Hollywood Bowl said customers continued prioritising social experiences over discretionary retail spending, with bowling retaining broad appeal as a lower-cost group activity. The company highlighted that a family of four can bowl for around £26 in the UK, a pricing point it believes remains attractive as consumers stay selective with spending.
Average spend per game in the UK climbed 7.6% to £12.77, helped by modest price increases, higher spending during peak periods and stronger uptake of add-ons including VIP lanes, amusements, food and drink.
Management also pointed to the growing use of dynamic pricing and AI-driven marketing tools, which it said were improving customer conversion rates and boosting spend per visit.
UK revenues increased 9.4% to £118.4 million, with like-for-like growth of 2.6%, while Canadian revenue rose 12.8% to CAD42.9 million. Canadian like-for-like growth was more subdued at 0.5% after snowstorms disrupted trading during the period.
The group recently opened a new centre in Edmonton and now expects to reach 35 Canadian sites by 2032, bringing forward its previous target by three years. Across the UK, Hollywood Bowl remains confident of reaching 95 centres by 2035.
Chief executive Stephen Burns said demand for the company’s “high-quality and affordable leisure experiences” remained strong and added that refurbished and newly opened venues were generating solid returns.
Looking ahead, the group said it remained on track to meet market expectations for the 2026 financial year, with two new UK sites and one Canadian venue due to open in the second half. Management also expects the pace of openings to increase further in 2027.
Hollywood Bowl ended the half with net cash of £26 million alongside an undrawn £25 million revolving credit facility, leaving the group with additional flexibility as it continues expanding across both markets.