Reading International . Class B Stock Earnings Reports

Reading International reported Q1 2026 revenue of $45.1M, a $5M (14% global cinema) improvement versus Q1 2025 driven by a stronger film slate, higher attendance, improved F&B, and favorable AUD/NZD FX movements. The cinema segment recorded positive operating earnings before depreciation & amortization for the first time since 2019, and consolidated global operating loss improved to $3.6M (best since Q1 2019). Net loss attributable to the company widened to $8.1M from $4.8M in the prior year largely because Q1 2025 included a $6.6M gain on sale of Wellington properties. Cash and cash equivalents were very low at $0.5M and total borrowings were $184.6M; management continues to work with lenders on covenant amendments, repayment deferrals and refinancings. Management has classified Cinema 1,2,3 as held for sale and signed a PSA for Napier (expected close this quarter), intending to use sale proceeds in part to reduce debt. Operational priorities include F&B and loyalty program expansion, targeted capex/renovations (luxury recliners, PLF screens, Wellington redevelopment), closing underperforming theaters, and continued focus on reducing G&A and interest expense. Geographic performance varied: Australia was much stronger (26% cinema revenue increase, record ATP), New Zealand was weaker but showing operational improvements, and the U.S. improved but still had an operating loss (positive before depreciation). Management reiterated commitment to the two-business, three-country strategy, emphasized selective asset monetizations to meet liquidity needs without equity dilution, and expects the robust 2026 film slate to support continued recovery. Key near-term investor considerations: low cash balance and ongoing refinancing/liquidity risk, active asset sale processes (NYC cinemas, Napier), improving underlying cinema operations, and continued execution on cost, lease, and loyalty initiatives to restore sustained profitability.