Everyman has seen its share price drop by over 25% in today’s trading after the cinema chain reported a “weaker than anticipated” performance in its Q4 trading period.

The company cited a “challenging economic environment” and cut both its revenue and profit expectations for the full year.

In a trading update for the Q4 period, Everyman said it is now expecting to report group revenue of £114.5m and earnings of £16.8m, as it blamed its box office performance.

Despite the figures and the impact of the market reaction to its share price, the cinema group did state it is still on track to achieve growth across both metrics in FY25, having recorded revenue of £107.2m and earnings of £16.2m in FY24.

CEO, Alex Scrimgeour, said: “Notwithstanding the industry-wide challenges, to date this has been a year of progress in which we have achieved growth across our core operating metrics, delivering increased revenue, earnings and customer spend per head, as well as strong membership growth and expanding market share.

“The continued growth in customer satisfaction reflects our commitment to delivering the premium experience across our estate, and with our market leading position, we remain confident in the long-term growth opportunity in the premium cinema sector.”

Everyman said it would release a further trading update for FY25 which will include amended guidance on its outlook for future years in January.

Highlighting the challenges facing cinema operators, head of markets at AJ Bell, Dan Coatsworth, commented: “Netflix trying to buy Warner Bros arguably clouds the outlook for the cinema industry even further. Should Netflix manage to fight off Paramount in the bid for Warner Bros then it’s inevitable that more big titles go straight to streaming.

“The cinema industry is not going to disappear completely, but its trials and tribulations are getting worse. This is evident in Everyman’s deteriorating share price which tells the story of a business losing fans left, right and centre. It is down 82% since May 2021.”

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