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1. Company Snapshot

1.a. Company Description

Reading International, Inc., together with its subsidiaries, focuses on the ownership, development, and operation of entertainment and real property assets in the United States, Australia, and New Zealand.The company operates in two segments, Cinema Exhibition and Real Estate.The Cinema Exhibition segment operates multiplex cinemas.


This segment operates its cinema exhibition businesses under the Reading Cinemas, Angelika Film Center, Consolidated Theatres, State Cinema, Event Cinemas, and Rialto Cinemas brands.The Real Estate segment develops, rents, or licenses retail, commercial, and live theater assets.As of December 31, 2020, the company had interests in 63 cinemas comprising approximately 515 screens; fee interests in two live theaters; fee interest in 44 Union Square property; fee interest in one cinema in Manhattan; fee interests in two cinemas in Australia and three cinemas in New Zealand; fee interest in entertainment-themed centers; fee interest in 2 office buildings; and fee ownership of approximately 8.9 million square feet of developed and undeveloped real estate assets.


Reading International, Inc.was incorporated in 1999 and is headquartered in New York, New York.

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1.b. Last Insights on RDI

Reading International's recent performance was negatively impacted by a decline in box office revenue, driven by a decrease in attendance and average ticket prices. The company's cinema segment was also affected by increased competition from streaming services and a shift in consumer behavior. Furthermore, the company's real estate segment was impacted by a decline in rental income due to a decrease in occupancy rates. Additionally, the company's efforts to revamp its cinema experience, such as the Angelika Film Center's transformation for Wes Anderson's new comedy, may not be enough to offset the negative trends in the industry.

1.c. Company Highlights

2. Reading International's Q3 2025 Earnings: A Resilient Performance Amidst a Weaker Movie Slate

Reading International reported a 13% decline in global total revenue to $52.2 million in Q3 2025, primarily due to a weaker movie slate compared to the previous year. Despite this, the company demonstrated resilience, with its global operating loss improving by 4% to a loss of $329,000, and positive EBITDA increasing by 26% to $3.6 million. The net loss also improved significantly, by 41%, to a loss of $4.2 million, marking the best third-quarter result since Q3 2019. The company's EPS came in at -$0.18, missing analyst estimates of -$0.08752.

Publication Date: Nov -29

📋 Highlights
  • Revenue Decline: Global total revenue dropped 13% to $52.2 million in Q3 2025, attributed to a weaker movie slate compared to the prior year.
  • Improved Profitability Metrics: Global operating loss narrowed by 4% to $329,000, while EBITDA rose 26% to $3.6 million, marking five consecutive quarters of positive EBITDA.
  • Net Loss Reduction: Net loss fell 41% to $4.2 million, the best third-quarter performance since Q3 2019, despite a 14% decline in global cinema revenues to $48.6 million.
  • Debt and Cost Reduction: Global debt balance decreased 15% to $172.6 million, with interest expenses down 17% year-over-year, achieved without government aid or shareholder dilution.
  • Record Food and Beverage Sales: Achieved record third-quarter F&B sales performance in Australia (AUD 8.05 SPP), New Zealand (NZD 6.75 SPP), and the US ($8.74 SPP), driven by loyalty programs and membership growth.

Segment Performance

The global cinema revenues decreased by 14% to $48.6 million, with the US cinema revenue declining by 10% to $25.1 million. However, the company's food and beverage program remained a key area of focus, with record results in Australia, New Zealand, and the US. The Q3 2025 Australian F&B SPP was the highest third quarter ever at AUD 8.05, and the US F&B SPP was also a record at $8.74. As Ellen Cotter mentioned, "We're driving guests to our theaters through loyalty programs and developing new membership programs."

Balance Sheet and Cash Flow

Reading International has made significant progress in reducing its debt, with a 15% decrease in global debt balance to $172.6 million as of September 30, 2025. The company's interest expense has also decreased by 17% compared to the same period last year. The cash used in operating activities decreased by $6 million to $5.9 million, demonstrating the company's ability to manage its cash flows effectively.

Valuation and Outlook

With a P/S Ratio of 0.22 and an EV/EBITDA of 12.26, the company's valuation appears reasonable, considering its current financial performance. Analysts estimate revenue growth of 11.0% for next year, which could potentially drive the stock price higher. However, the company's ROE of 216.23% and ROIC of -1.82% indicate a mixed picture. As the company looks to refinance its debt in 2026 and explore different marketing strategies for its properties, investors will be watching closely to see if Reading International can deliver a stronger 2026 and beyond.

3. NewsRoom

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Head-To-Head Analysis: Reading International (NASDAQ:RDI) & Flight Centre (OTCMKTS:FGETF)

Dec -02

Source: defenseworld.net

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Reading Cinemas at Valley Plaza Mall Transformation Revealed

Nov -25

Source: globenewswire.com

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Reading International, Inc. (RDI) Q3 2025 Earnings Call Transcript

Nov -20

Source: seekingalpha.com

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Reading International Reports Third Quarter 2025 Results

Nov -14

Source: globenewswire.com

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Critical Analysis: Carnival (NYSE:CCL) and Reading International (NASDAQ:RDI)

Oct -21

Source: defenseworld.net

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Reading International, Inc. (RDI) Q2 2025 Earnings Call Transcript

Aug -19

Source: seekingalpha.com

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Reading International Reports Second Quarter 2025 Results

Aug -14

Source: globenewswire.com

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Immerse Yourself in The Phoenician Scheme x Angelika Experience

May -28

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.57%)

6. Segments

Cinema

Expected Growth: 4.5%

Reading International's Cinema segment growth of 4.5% is driven by increasing demand for premium formats, strategic expansion into new markets, and a strong film slate. Additionally, investments in digital projection and 3D technology, as well as enhanced customer experiences, contribute to the segment's growth.

Real Estate

Expected Growth: 5.5%

Reading International, Inc.'s 5.5% growth in Real Estate is driven by increasing demand for entertainment and leisure activities, strategic acquisitions, and redevelopment of existing properties. Additionally, the company's focus on premium formats, such as luxury cinemas and entertainment centers, contributes to its growth. Furthermore, the company's global presence and diversified revenue streams also support its growth momentum.

7. Detailed Products

Cinemas

Reading International, Inc. operates a chain of cinemas that showcase a wide range of films, from blockbuster hits to independent art-house movies.

Real Estate

The company owns and operates a diverse portfolio of real estate properties, including commercial and residential spaces.

Live Theatres

Reading International, Inc. manages and operates live theatres that host various performances, including concerts, plays, and musicals.

Film Distribution

The company distributes films to cinemas and other exhibitors, providing a platform for filmmakers to showcase their work.

8. Reading International, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Reading International, Inc. is moderate due to the presence of alternative forms of entertainment, such as streaming services and video games.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of negotiating power of individual customers and the high switching costs associated with changing cinemas.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of a few large film studios and distributors, which can exert some pressure on Reading International, Inc.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including the need for significant capital investment and the complexity of the cinema business.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established cinema chains and the ongoing competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 87.79%
Debt Cost 4.55%
Equity Weight 12.21%
Equity Cost 11.92%
WACC 5.45%
Leverage 718.81%

11. Quality Control: Reading International, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Sphere Entertainment

A-Score: 4.3/10

Value: 7.7

Growth: 2.1

Quality: 4.2

Yield: 0.0

Momentum: 8.5

Volatility: 3.3

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Madison Square Garden Entertainment

A-Score: 4.2/10

Value: 3.5

Growth: 4.3

Quality: 4.3

Yield: 0.0

Momentum: 7.5

Volatility: 5.3

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Dolphin Entertainment

A-Score: 3.7/10

Value: 8.6

Growth: 4.0

Quality: 3.6

Yield: 0.0

Momentum: 4.0

Volatility: 2.0

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Reservoir Media

A-Score: 3.7/10

Value: 4.5

Growth: 2.6

Quality: 4.5

Yield: 0.0

Momentum: 3.0

Volatility: 7.3

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Reading International

A-Score: 3.6/10

Value: 8.2

Growth: 2.7

Quality: 3.4

Yield: 0.0

Momentum: 4.0

Volatility: 3.3

1-Year Total Return ->

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HOFRE

A-Score: 3.1/10

Value: 10.0

Growth: 3.7

Quality: 3.6

Yield: 0.0

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.22$

Current Price

1.22$

Potential

-0.00%

Expected Cash-Flows