Dave & Buster's(US:PLAY)2025-08-07 17:00Financial Data and Key Metrics Changes - Revenue decreased by $6 million, an 8% decline compared to the second quarter of the previous year, primarily due to changes in the schedule [7][8] - EBIT worsened from a loss of $6 million last year to a loss of $9 million this year, reflecting a decrease of approximately $3 million [8][15] - Cash position remains solid with $12 million reported at the end of the last quarter, expected to be enhanced by a $20 million bond issuance [8][26] Business Line Data and Key Metrics Changes - The company operated two aircraft during the quarter, with a focus on ACMI operations, which showed impressive on-time performance [2][3] - Yield per passenger increased by 4.1%, while load factor decreased by 2.7%, indicating a shift towards leisure destinations [10][19] - The leisure capacity increased by 15% in Q2 compared to the same quarter last year, despite operating fewer aircraft [17] Market Data and Key Metrics Changes - The share of Via passengers is decreasing, while front passengers are gaining a larger share [2] - The company is focusing on profitable leisure routes, with a shift away from transatlantic flights [17][22] Company Strategy and Development Direction - The company is transitioning to focus on leisure markets and ACMI leasing, which is expected to provide more stable financial income [16][20] - Plans to eliminate dual costs by moving all operations to Malta by the end of the year, which is anticipated to lower operational costs [22] - The business model is evolving to prioritize profitable routes and discontinue loss-making ones [16][24] Management's Comments on Operating Environment and Future Outlook - Management expects a significant improvement in financial performance in Q4 2025 and Q1 2026, projecting an increase of over $25 million [23][24] - The company is confident in achieving profitability in 2026, with a focus on growing the leisure segment [24][26] - Forward unit revenue is trending positively for upcoming quarters, indicating a strong outlook [22][26] Other Important Information - The company celebrated its fourth anniversary and two inaugural flights during the quarter [3] - A convertible bond worth $20 million was issued to strengthen the cash position [4][26] - The Net Promoter Score (NPS) improved significantly to 54, up from 31% last year, indicating high customer satisfaction [5] Q&A Session Summary Question: Is Play planning to launch any new destinations from Iceland in the coming quarters and what regions are you targeting? - The company plans to announce new destinations soon, including two in Morocco and Antalya in Turkey, which competitors do not offer [27][28] Question: How do the forward bookings for Q3 and Q4 look for the Icelandic market? - Forward bookings are looking good, with expectations that two-thirds of passengers will be flying from Iceland, indicating a healthy tourism market [29][30] Question: How much revenue are you expecting annually from ACMI in 2026 and do you anticipate further fleet reallocation toward ACMI? - The company expects annual revenue from ACMI to be slightly above $100 million, with no plans to allocate more than six of the ten aircraft currently to this business [31][32]