Q2 2026 Reading International Inc Earnings Call (Pre-recorded) Transcript
Key Points
- Reading International Inc (RDI) achieved its best quarterly operating income since Q2 2018, with Q2 2026 operating income of $7.5 million, a 159% improvement year-over-year.
- The Australian cinema circuit delivered record quarterly revenue in both local currency and US dollars, with a 31% increase in revenue and a 91% increase in operating income.
- Global F&B spend per person reached record highs in Australia and New Zealand, while the US outperformed publicly traded competitors with an $8.97 F&B SPP.
- Loyalty program membership surged, with over 625,000 members in Australia/New Zealand (up 27% quarter-over-quarter) and 41,000 paid memberships signed in Q2 2026.
- The company successfully reduced its cinema portfolio by closing nine loss-making theaters without early termination fees, improving net income and long-term profitability.
- Strong film slate in Q2 2026, including titles like 'Michael' and 'The Super Mario Galaxy Movie', drove increased attendance and revenue, with a promising lineup expected for the rest of 2026.
- Reading International Inc (RDI) continues to face high debt levels, with total borrowings of $183.1 million and a need to extend or modify several loan agreements, including the Santander loan and Bank of America facility.
- The sale of the Cinema 1, 2 & 3 property, a key part of the debt reduction strategy, is still not finalized, with only a preferred buyer identified and no executed contract yet.
- The Napier property sale in New Zealand is on hold due to unforeseen issues with the car park owner and buyer-requested changes, making the transaction less attractive and potentially delaying cash inflows.
- US cinema revenue decreased by 3% in Q2 2026, impacted by the closure of two San Diego theaters and a weaker slate of art house titles at venues like the Angelika New York.
- The company's liquidity remains tight, with cash and cash equivalents of only $5.7 million, and it has had to defer principal payments and modify covenants with lenders to manage cash flow.
- The ongoing legal dispute over the Reading Viaduct in Philadelphia remains unresolved, with no settlement offers or condemnation filings, and the appeal process is expected to continue through at least 2026.
Thanks for joining the 2026 second quarter earnings call for reading international Inc. My name is Gilbert Avanes, I'm the company's Chief Financial Officer and Treasurer. Joining me today is Ellen Cotter, our President and CEO.
After I run through the normal caveats, I'll start by presenting the results from our 2026 second quarter. I'll also talk about our balance sheet, liquidity and provide a summary of our debt position. Then I'll turn the call over to Ellen, who will discuss our business strategy. After that, we'll address some specific questions that came in from our stockholders, understanding that we have tried to weave answers to many stockholders' questions into our prepared remarks.
So let me start with running through the usual caveats. Some of the statements that we make today regarding our business, operations and financial performance may be considered forward-looking. Such statements are based on our current expectations and assumptions that are subject to a number of
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