Hollywood Bowl looks to have scored a strike with its 2022 acquisitions in Canada, judging by its latest first half results which revealed a strong contribution from this part of the business.
There is a genuine bowling culture in Canada which may well be receptive to Hollywood Bowl’s approach of reviving tired and grimy bowling alleys and giving them a bit of shine.
“This approach is continuing to serve the company well in the UK too. While it’s often said there is nothing a company can do about inflationary pressures, that’s not strictly true, with Hollywood Bowl benefiting from management’s prudent decision to hedge its energy costs out to 2024,” said Russ Mould from AJ Bell.
“The 9% hike in the dividend is a genuine display of faith in the company’s prospects and suggests it sees demand for ten-pin bowling remaining resilient.
“While the pressures on consumer spending are clear people still need an escape from the day-to-day grind and bowling remains a relatively inexpensive and family-friendly option.
“Nonetheless, Hollywood Bowl will be hoping for an improvement in the economic backdrop as it would be really lucrative for the group if people were ordering extras like food and drink more freely.”
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