Hollywood Bowl, the UK's leading ten-pin bowling operator, has announced a record surge in annual revenues, crediting its expansion strategy and savvy use of dynamic pricing to attract cost-conscious families.
Record Revenues Driven by Expansion and Smart Pricing
The leisure giant, which now operates 77 centres across the UK and 15 in Canada, saw its total income climb by nearly 9 per cent to £250.7 million for the year ending September. This impressive growth was significantly powered by the opening of five new UK venues and two in Canada. Even when stripping out these new sites, like-for-like sales still saw a 1.3 per cent increase.
A key factor in this financial performance was the implementation of dynamic pricing, a model that adjusts the cost of a game in real-time based on demand. The company emphasised its commitment to affordability, stating that a family of four can bowl at peak times for under £26, with price rises kept below UK inflation.
Shifting Consumer Habits and Rising Costs
Despite the revenue milestone, the group faced headwinds, with pre-tax profits falling by 8.6 per cent to £46 million year-on-year. The company noted a 7.5 per cent decline in the volume of games played, attributing this to last year's hot summer affecting indoor leisure and ongoing weaker consumer confidence.
However, this was offset by a notable increase in spending on-site. The average spend per game rose by nearly 10 per cent, as visitors splurged more on food, drink, and amusement arcades. "Whilst the cost of living remains high, consumers continue to prioritise their spending on experiences as opposed to purchases," the firm told investors.
Future Plans and Forthcoming Challenges
Hollywood Bowl is pushing forward with an ambitious growth strategy, confirming its plans to have 95 centres in the UK by 2035 are on track. It positions itself as a broadly appealing, family-friendly alternative to newer, adult-focused leisure concepts typically found in city centres, with its venues often located in out-of-town retail parks.
Looking ahead, the company flagged rising operational costs. It expects its tax and wage bill to increase next year, warning that a revaluation of business rates will "wipe out" a sector tax reduction. "Therefore we will see an increase in business rates in the next financial year," it stated. Despite these challenges, investor sentiment appeared positive, with shares rising by more than 3 per cent following the announcement on Tuesday morning.
