Reading International (RDI 3.64%), an operator of cinemas and real estate properties across the United States, Australia, and New Zealand, reported its second quarter fiscal 2025 results on August 14, 2025. The company delivered significantly stronger operating numbers, with GAAP revenue of $60.4 million—exceeding analyst predictions by $1.0 million. However, its GAAP diluted earnings per share (EPS) loss of $(0.12) missed expectations by $0.06.
The quarter showed revenue recovery in the cinema segment, with GAAP total revenues of $60.4 million.
while real estate asset sales and cost reductions helped lift operating earnings back into positive territory for the first time since before the pandemic, with operating income of $2.9 million.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS – Diluted (GAAP) | $(0.12) | $(0.06) | $(0.57) | 78.9% |
| Revenue (GAAP) | $60.4 million | $59.39 million | $46.8 million | 29.1% |
| Operating Income (GAAP) | $2.9 million | $(7.7) million | N/M | |
| Adjusted EBITDA | $6.3 million | $(3.6) million | N/M | |
| Net Loss Attributable to Reading | $(2.7) million | $(12.8) million | 78.9% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
The Business at a Glance
Reading International operates two primary businesses: cinema exhibition and real estate. Its cinema division runs movie theaters under brands such as Reading Cinemas, Angelika Film Center, and Consolidated Theatres, targeting different audiences with a mix of mainstream and independent films. In the real estate segment, the company owns, develops, and leases a portfolio of retail, commercial, and entertainment-focused properties, including both cinemas and third-party holdings in three countries.
Recently, the company has focused on improving core profitability in both areas. It has worked to trim underperforming theaters, drive higher food and beverage revenue, monetize mature real estate assets, and reduce debts. Success in these areas depends on sustaining box office momentum, maintaining high occupancy for tenants, and navigating real estate cycles in varying geographic markets.
Quarter Highlights: Results, Drivers, and Trends
The most noteworthy development was a sharp recovery in the cinema exhibition segment. GAAP cinema revenue jumped 32% compared to the prior year, reaching $56.8 million. The segment posted an operating profit of $5.5 million, a turnaround from a GAAP operating loss of $4.6 million in Q2 2024. Gains were driven by strong box office releases and a focus on increasing both average ticket prices and food and beverage sales per patron. For instance, food and beverage per person reached all-time highs in Australia (A$8.26), New Zealand (NZ$7.14), and the U.S. ($9.13), marking a new record for a fully operating circuit in the U.S.
Performance improved across all regions. U.S. cinema revenue grew 41%. Australia and New Zealand cinema revenue each increased by 24%.
Each market generated positive segment operating income (non-GAAP).
Reading also closed another underperforming U.S. cinema in April, continuing its plan to reshape its theater footprint for efficiency. As operational success remains closely tied to the availability of blockbuster films
The real estate segment had a different trajectory. reflecting continued asset sales. However, segment operating income increased by 56% to $1.5 million—its strongest second quarter result since 2018. A major driver was the sale of Cannon Park in Australia, which generated AU$32.0 million and was used to reduce associated debt. The portfolio in Australia and New Zealand boasted a 99% occupancy rate across just under 157,000 square feet for third-party tenants as of June 30, 2025, with management highlighting new leases and tenant renewals as supporting stable income.
Cash and equivalents stood at $9.1 million as of June 30, 2025, down from $12.3 million at December 31, 2024. The company’s reported net equity remains negative at $(8.4) million as of June 30, 2025, reflecting the ongoing challenge of rebuilding its financial position. There were no declared or trend-altering dividends during the period.
Business Segments and Product Detail
The company’s cinema exhibition business is its main revenue contributor. Reading Cinemas and Angelika Film Center focus on movies, with specialty brands like Orpheum and Minetta Lane catering to live theater. Average ticket pricing and food and beverage sales remained areas of emphasis, with new loyalty programs, targeted discounts (such as “discount Tuesday” in the U.S.), and themed events pushing up-per customer revenue. Merchandise sales and alcohol offerings also contributed to per-visit spending growth.
In real estate, assets include shopping centers, live theater venues, and commercial office properties such as 44 Union Square in New York. Asset management this quarter focused less on new development and more on sales and lease optimization. While recurring revenue from rent decreased with each major property sold, proceeds were directed to pay down debt and extend loan maturities, leaving the company with lower financial risk but a smaller base for future recurring income. Leasing activity held portfolio occupancy at near full levels in Australia and New Zealand, but no new material development launches were announced.
Looking Forward
Management expressed optimism for the rest of 2025, citing continued box office momentum and a promising calendar of movie releases ahead. Statements acknowledged the unpredictability of cinemagoer demand and the need for strong film slates to sustain recent gains in the cinema business. The company’s future results will depend on maintaining high per-patron revenue, effective cost management, and successful execution in its asset monetization strategy.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
