Reading International, Inc. reported a decline in financial performance for the quarter and nine months ended September 30, 2024, compared to the same periods in 2023. Revenue for Q3 2024 was $60.1 million, down 10% from $66.6 million in Q3 2023. For the nine months, revenue decreased by 14% to $152.0 million from $177.4 million. The cinema segment, which constitutes a significant portion of the company's revenue, saw a notable drop, with cinema revenue for Q3 2024 at $56.4 million, a decrease of approximately 10% from $62.7 million in Q3 2023. The nine-month cinema revenue also fell by 15% to $140.6 million.
The company's profitability was adversely affected, with a net loss of $7.0 million for Q3 2024, compared to a loss of $4.5 million in Q3 2023, marking a 57% increase in losses. For the nine months, the net loss was $30.0 million, up from $18.7 million in the prior year, reflecting a 61% decline in profitability. Basic loss per share for Q3 2024 was $(0.31), compared to $(0.20) in Q3 2023, and for the nine months, it was $(1.32), up from $(0.82).
The decline in revenue and profitability was attributed to several factors, including weaker movie slates due to the 2023 Hollywood strikes, the closure of underperforming cinemas, and unfavorable foreign exchange rates impacting operations in Australia and New Zealand. The company closed five cinemas since Q4 2022, which contributed to reduced attendance and revenue.
Despite these challenges, Reading International has made strategic moves to improve liquidity, including the sale of its Culver City office building for $10.0 million, which helped reduce debt by $8.4 million. The company also extended the maturity of several loans, including a $47.1 million financing facility and a $7.7 million Santander loan, to improve cash flow management.
As of September 30, 2024, total assets were $495.7 million, down from $533.1 million at the end of 2023. Total liabilities decreased slightly to $491.1 million from $500.1 million, while stockholders' equity fell significantly to $5.2 million from $33.1 million, resulting in a debt-to-equity ratio of 46.68, up from 6.37.
Looking ahead, the company anticipates a potential recovery in the cinema industry, driven by upcoming film releases such as "Gladiator II" and "Wicked," which may positively impact performance in 2025.
About READING INTERNATIONAL INC
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