Soho House & (SHCO)2024-08-10 08:49Financial Data and Key Metrics Changes - Membership revenues increased by 16% year-on-year to 305 million [6][9][12] - Adjusted EBITDA grew by 33 million, with house-level contribution up 12% year-on-year [5][10][12] - The company ended the quarter with 665 million, with a net debt to adjusted EBITDA ratio of five times [11] Business Line Data and Key Metrics Changes - In-house revenues were up 2% year-on-year, showing improvement in footfall and spend per visit [6][9] - House-level margins increased by approximately 100 basis points to 27%, despite the impact of new house openings [9][10] - Other revenues decreased by 1% year-on-year, primarily due to initial impacts from new locations [9] Market Data and Key Metrics Changes - Membership demand remains strong, with a global waitlist of 111,000 and total membership reaching 204,000 [4][5] - The company reported consistent trends across major geographic regions, including the Americas, UK, and Europe [16] Company Strategy and Development Direction - The company plans to open new locations in Madrid, Milan, Barcelona, and Tokyo, enhancing membership demand [5][12] - Focus on operational excellence and member experience, including improved service and dining options [6][7] - Strategic initiatives have led to a 12% increase in house-level contribution, despite short-term impacts from new openings [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued membership growth and improved financial performance, raising year-end membership guidance to over 212,000 [12] - The company acknowledged ongoing challenges in the entertainment industry but noted improvements in member spend and satisfaction [20][23] Other Important Information - The company plans to hold an Investor Day in New York on December 5, 2024, to discuss long-term growth and profitability [13] - The company has initiated a 5 million of shares in the quarter [11] Q&A Session Summary Question: Insights on house revenue improvement by region - Management noted strong membership demand and improved footfall trends across all major geographies, with no significant regional variance [15][16] Question: Preliminary planning for 2025 membership count growth - Management indicated it is too early to provide guidance for 2025, with more details to be shared at the upcoming Investor Day [17] Question: Plans for new house openings - Management confirmed plans to open two to four new houses, with recent openings in Portland and Sao Paulo, and upcoming openings in Manchester and Barcelona [19] Question: Impact of the Hollywood strike on in-house revenues - Management acknowledged ongoing impacts from the entertainment industry but noted improvements in member spend across houses [20] Question: Cross-border travel trends - Management reported a good season in Europe, with increased occupancy and average daily rates, particularly benefiting from events like the Olympics in Paris [23] Question: Performance of new Bodrum location and future openings - Management expressed confidence in the Bodrum location's performance and indicated that Tulum is still under construction [27][28] Question: Member satisfaction and retention - Management highlighted that members desire unique experiences and great service, with no significant changes in member retention noted [29][30]