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, while at the same time maintaining the quality and standards which help incentivise film-lovers who can stream most films they want at the click of a button to go out and pay to see the latest releases on the big screen.
AJ Bell’s Russ Mould said: “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.
“For now, the business appears to be doing a decent job by announcing a big jump in admissions in 2022 versus 2021, partly explained by the emergence from the pandemic, and a return to profit.
“And in a sign of its confidence the company is set to continue with the rollout of new venues.”
Meanwhile, it might not want to present it in these terms but the online publisher of LADbible specialises in clickbait and it is very good at what it does.
“The company is heavily focused on social media and video streaming platforms and has an agreement with Facebook to share revenue from in-video adverts on the platform. It is still waiting for other platforms like TikTok, Instagram and Snapchat to develop a monetisation model for third parties.
“Offering advertisers access to the hard-to-reach 18-34 demographic helps drive advertising revenue. However, the company is not immune to wider economic trends and earnings fell in 2022 as advertising spend dropped.
“Whether the laddish brand will remain relevant for the next generation is open to question and the company may have to adapt to survive.
“Opportunities for the business include building out the brand in the US and growing its LADnation research panel to offer advertisers more data and deeper insight.”
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