Reading International(US:RDI) Newsfilterยท2024-05-15 13:00Core Viewpoint - Reading International, Inc. faced financial challenges in Q1 2024 due to the ongoing impact of the 2023 Hollywood Strikes, which disrupted movie releases and affected cinema revenues. However, the company managed to reduce its operating loss and demonstrated resilience through its real estate operations, which performed strongly despite the challenges in the cinema segment [2][3][5]. Cinema Business - Total cinema revenue for Q1 2024 was $41.3 million, a slight decrease of 2% compared to $41.9 million in Q1 2023 [6][10]. - The operating loss for the cinema segment improved by 10% to $4.2 million from $4.6 million in Q1 2023 [6][10]. - The U.S. cinema business outperformed the North American box office, gaining market share despite closing three theaters, attributed to strong performances from arthouse films [10]. - Upcoming film releases are expected to enhance cinema revenues, with a robust schedule for 2024 and 2025 featuring major titles from Disney and other studios [5][10]. Real Estate Business - The real estate segment generated $4.9 million in revenue for Q1 2024, a decrease of 3% from $5.1 million in Q1 2023 [6][10]. - The operating income from real estate was $0.9 million, down 12% from $1.0 million in Q1 2023, influenced by the monetization of two properties [6][10]. - The Australian real estate division achieved its highest quarterly operating income since Q2 2018, indicating strong performance in this segment [7]. Balance Sheet and Liquidity - As of March 31, 2024, cash and cash equivalents were $7.5 million, with total gross debt reduced to $195.7 million from $210.3 million at the end of 2023 [10][22]. - The company generated $11.3 million in net sales proceeds from the sale of real estate assets, which will be used to support operations and reduce debt [5][10]. - The total assets decreased to $494.9 million from $533.1 million as of December 31, 2023, reflecting the impact of asset sales [10][22].