Reading International Q2 2025 Earnings Report

Reading International EPS Results

• Actual EPS: -$0.12
• Consensus EPS: -$0.06
• Beat/Miss: Missed by -$0.06
• One Year Ago EPS: N/A

Reading International Revenue Results

• Actual Revenue: $60.38 million
• Expected Revenue: $59.39 million
• Beat/Miss: Beat by +$986.00 thousand
• YoY Revenue Growth: N/A

Reading International Announcement Details

• Quarter: Q2 2025
• Date: 8/14/2025
• Time: Before Market Opens
• Conference Call Date: Monday, August 18, 2025
• Conference Call Time: 8:00AM ET

Reading International (NASDAQ:RDI), Inc. (NASDAQ: RDI) is a diversified entertainment and real estate company headquartered in Santa Monica, California. The company’s principal operating arm is Reading Cinemas, a chain of multiplex movie theaters serving audiences in Australia, New Zealand and the United States. Reading Cinemas locations feature a mix of mainstream and independent film programming, premium large-format screens, special event presentations and concession services designed to enhance the customer experience.

In addition to its exhibition business, Reading International maintains a real estate development and management division focused on retail, office and mixed-use properties. Its portfolio includes shopping centers, entertainment-anchored developments and infill land holdings in key urban and suburban markets across North America and Australia. Through both ground-up projects and adaptive reuse of existing assets, the company seeks to generate stable cash flows and long-term value appreciation.

The modern incarnation of Reading International traces its roots to the historic Reading Company railroad, with land holdings that provided the foundation for its cinema and development ventures. In the early 1990s, investor and chairman James F. Cotter led the formation of Reading Cinemas in Western Australia, expanding the concept into new territories and later merging cinema operations with the real estate platform. Cotter continues to serve as Chairman and Chief Executive Officer, overseeing strategic growth across both lines of business.

Today, Reading International operates corporate offices in Santa Monica and Richmond, Virginia, and employs a team of entertainment, development and property management professionals. The company aims to leverage its combined expertise in film exhibition and real estate to pursue selective expansion opportunities, enhance asset performance and deliver diversified returns for shareholders.

Reading International Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Q2 2025 results marked the best second quarter operating income since Q2 2019, with global revenues up 29% to $60.4 M, operating income improving 138%, and adjusted EBITDA turning positive at $6.3 M.
• Positive Sentiment: Reading International reduced its debt by over $102.5 M since June 2020, including the sale of Cannon Park for AUD 32 M to pay off a $20 M bridging facility and further debt.
• Positive Sentiment: Food and beverage spend per patron hit record highs across all regions, with the US at $9.13, New Zealand at NZD 7.14, and Australia at AUD 0.26 in functional currency, driven by enhanced concessions and themed merchandise.
• Negative Sentiment: Weakened average exchange rates in Australia and New Zealand (down 2.7% and 19% versus the USD) dampened reported results, given nearly half of revenues are generated in those markets.
• Neutral Sentiment: Management forecasts a Q3 slowdown but expects a robust Q4 2025 and a strong 2026 film slate (including Zootopia 2, Five Nights at Freddy’s 2, Spider-Man: Brand New Day, Toy Story 5), positioning the company for growth.

Presentation

[Andrzej Matyczynski, Executive Vice President of Global Operations at Reading International]

Second Quarter twenty twenty five Earnings Call. Thank you for joining Reading International earnings call to discuss our twenty twenty five second quarter. My name is Andrei Mattyczynski, and I am Reading's executive vice president of global operations. With me are Alan Cotter, our president and chief executive officer and Gilbert Avanes, our executive vice president, chief financial officer, and treasurer. Before we begin the substance of the call, I will run through the usual caveats.

[Andrzej Matyczynski, Executive Vice President of Global Operations at Reading International]

In accordance with the safe harbor provision of the Private Securities Litigation Reform Act of 1995, certain matters that will be addressed in this earnings call may constitute forward looking statements. Such statements are subject to risks, uncertainties, and other factors that may cause our actual performance to be materially different from the performance indicated or implied by such statements. Such risk factors are clearly set out in our SEC filings. We undertake no obligation to publicly update or revise any forward looking statements. In addition, we will discuss non GAAP financial measures on this call.

[Andrzej Matyczynski, Executive Vice President of Global Operations at Reading International]

Reconciliations and definitions of non GAAP financial measures, which are segment operating income, EBITDA and adjusted EBITDA are included in our recently issued twenty twenty five second quarter earnings release released on August 14 on our company's website. We have adjusted where applicable the EBITDA items we believe to be external to our business and not reflective of our cost of doing business or results of operations. Such costs could include legal expenses relating to extraordinary litigation and any other items that we can consider to be nonrecurring in accordance with the two year SEC requirement for determining whether an item is nonrecurring, infrequent, or unusual in nature. We believe that the adjusted EBITDA is an important supplemental measure of our performance. In today's call, we also use an industry accepted financial measure called theater level cash flow, TLCF, which is theater level revenue less direct theater level expenses.

[Andrzej Matyczynski, Executive Vice President of Global Operations at Reading International]

Average ticket price, ATP, which is calculated by dividing cinema box office revenue by the number of cinema admissions, is also used as an accepted industry acronym. We also use a measure referred to as food and beverage spend per patron, FMBSBP, which is a key performance indicator for our cinemas. The F and B SPP is calculated by dividing a cinema's revenues generated by food and beverage sales by the number of admissions at that cinema. Please note that our comments are necessarily summary in nature, and anything we say is qualified by the more detailed disclosure set forth in our form 10 q and other filings with the US Securities and Exchange Commission. So with that behind us, I'll turn it over to Ellen, who will review our twenty twenty five second quarter results and discuss our business strategy going forward, followed by Gilbert, who will provide a more detailed financial review. Ellen?

[Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International]

Thanks, Andre. Welcome, everyone, to the call today, and thanks for listening in. This past quarter, our teams across Australia, New Zealand, and The United States delivered the best second quarter operating income since Q2 twenty nineteen, with both our Global Cinema and Real Estate divisions contributing to the improved results. And advancing our strategic priority to reduce our overall debt balance, during the quarter, we also completed the sale of our Cannon Park assets in Townsville, Australia for AUD 32,000,000. The proceeds were used to pay off our $20,000,000 NAB bridging facility and reduce our Bank of America debt by $1,500,000.

[Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International]

Including these payoffs, we've repaid over a $102,500,000 of debt since June 2020, just after the start of the pandemic. The second quarter movie lineup was amazing and generated hits that resonated with a wide range of audiences. A Minecraft movie, Lilo and Stitch, Mission Impossible, The Final Reckoning, Thunderbolts, Sinners, the live action remake of How to Train Your Dragon, and Brad Pitt in f one performed well across our markets with certain movies appealing overwhelmingly to our specific audiences. For instance, our consolidated theater circuit in Hawaii embraced Jason Momoa in Minecraft and Disney's Lilo and Stitch. Our global q two twenty twenty five box office helped us deliver these improved results

[Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International]

At $60,400,000 our global total revenues increased 29% versus Q2 twenty twenty four. At $2,900,000 our global operating income increased 138% from a global operating loss of $7,700,000 in Q2 twenty twenty four. At $6,300,000 our positive EBITDA, which includes a gain on the sale of our Cannon Park real estate assets, increased over 276% from a negative EBITDA of 3,600,000 in the 2024. At $56,800,000 our Q2 twenty twenty five global cinema revenue was 32% higher than the Q2 twenty twenty four and represented just over 79% of pre pandemic second quarter twenty nineteen levels at a time when we operated an additional 62 U. S.

[Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International]

Based screens in eight movie theaters. At $5,500,000 our second quarter twenty five global cinema operating income increased 218% over the '24 and represented the best global cinema operating income since the 2019, which reflects our company's efforts to drive efficiency and a more streamlined operation. At $4,700,000 our second quarter twenty five global real estate revenues decreased slightly from $5,000,000 in the same period in '24, which reflects the monetization of our real estate assets. At $1,500,000 our quarter's global real estate operating income increased 56% over last year's second quarter, which was primarily due to the improvements in our U. S.-based live theater business.

[Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International]

I'll also note that these results would have been even better had the Australian and New Zealand dollar average exchange rates during the second quarter not weakened against the U. S. Dollar by 2.71.9% respectively compared to Q2 twenty twenty four. Historically, about 50% of our total revenue has been generated internationally in Australia and New Zealand, and this quarter was no different with 47% of our total revenue being generated in Australia and New Zealand. With that, let's take a closer look at our global cinema business.

[Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International]

Q2's global cinema revenues and global operating income exceeded our expectations, reinforcing our confidence in the theatrical experience. The quarter started strongly in April '25. The April 25 releases of a Minecraft movie in Sinners both outperformed our expectations and we believe energized moviegoers. These films have captivated diverse audiences across our markets, generating significant cultural milestones. In April '25, each of our cinema divisions delivered substantially better revenue and theater level cash flow compared to April '24.

[Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International]

Lilo and Stitch was the standout film of May, drawing audiences to theaters and deeply resonating with Disney fans and families alike. Action movies such as Mission Impossible the Final Reckoning and Final Destination Bloodlines were also crucial to our success in May '25. June release of How to Train Your Dragon drew audiences with its strong storytelling and family demographic, and f one provided cinema goers with an exhilarating ride. While July was a strong month, thanks to Superman Jurassic World rebirth and the Fantastic Four First Steps, we do expect that the third quarter will slow down significantly. However, along with the rest of the industry, we have very high hopes for the fourth quarter when the slate is exciting, diverse, and very promising.

[Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International]

We believe that families will come together to watch Zootopia two from Walt Disney Animation Studio. Audiences will be on the edge of their seats thrilled by the heart pounding suspense of Five Nights at Freddy's two, the sequel. Huge franchises will be returning in the form of Tron, Ares, and Avatar Fire and Ash. And the highly anticipated Wicked for Good is also set to release in the fourth quarter. And looking ahead to next year, we're very excited about the 2026 film slate, including major franchises such as Spider Man Brand New Day, Toy Story five, Devil Wears Prada two, Minions three, Mega Minions, Shrek five, Supergirl, Super Mario Brothers two, Moana, Ice Age six, and Jumanji three.

[Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International]

That's the lineup. Our global teams will be poised and ready to take advantage of these expected strong box office performers. Now let me highlight a few of the key strategic initiatives and themes our teams have focused on throughout 2025. Starting with our f and b program, which continues to be a main focus. At $0.26 that's in functional currency, our Q2 twenty twenty five Australian FNB SPP was the highest second quarter ever.

[Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International]

At $7.14 in New Zealand dollars, our Q2 twenty twenty five New Zealand FNB SPP was our highest quarter ever in our history. At $9.13 our impressive second quarter twenty five U. S. FMB SPP was the highest quarter ever when taking into account a fully operational U. S.

[Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International]

Circuit. This result also exceeded the results of other major publicly traded exhibitors. These F and B milestones are due to improvement in the convenience and functionality of our online and app f and b sales with our transaction sizes consistently improving, the sale of beer, liquor, wine in our theaters, the continued embrace of movie theme menus in all three countries where we offer our guests fun movie inspired cocktails, food items, or desserts, and expanding merchandise trend where, especially in The US, we're complementing our guests movie experience with the opportunity to buy movie theme merch. In The US, we generated close to a half a million dollars in revenue from movie theme merchandise, which was a nice contributor to our overall F and B SPP. We're also driving guests to our theaters through existing loyalty programs and are working to develop new and improved rewards and membership programs.

[Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International]

In Australia and New Zealand, we recently revamped and relaunched our free to join Reading rewards program to provide better perks and savings. Today, we have over 336,000 members. Late in the fourth quarter twenty four, we launched a paid loyalty program for both our Reading and Angelica brands in Australia. Since launch, we've signed up over 15,000 paid memberships in Australia and New Zealand. In The US, we have a free to join Angelica membership program with just under a 165,000 members for eight theaters, and we'll launch a premium Angelica monthly membership within the next few months.

[Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International]

We have an existing free to join rewards program in Hawaii that will be rolled into a new free to join program and a paid membership program, which are scheduled to be completed again in the next few months. Soon after, we intend to roll out the same offer at our US based Reading Cinemas. Another major effort for our global executive teams has been to work with our landlords to try and recalibrate our occupancy costs to reflect the economic reality we've been experiencing over the last few years. While in our landlord negotiations requesting occupancy relief, we highlight that while our attendance hasn't returned to pre pandemic levels, almost all of our operating expenses are up and note the fact that our film rent as a percentage of box office continues to climb and that we can only drive our ticket and F and B prices so high. Turning to the second quarter twenty twenty five results for US cinemas.

[Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International]

Our revenues increased by 41% to $30,300,000 compared to the 2024, and our operating income improved by 152% to an income of $2,300,000 from a loss of $4,400,000 in the '24. A couple of milestones to mention. Our average ticket price or ATP of $13.44 marks our highest second quarter figure ever for a US cinema circuit. In mid April twenty twenty five, we closed another money losing theater, our Reading Cinemas in Town Square in San Diego. The Angelica in New York City, the anchor of our specialty circuit, also enjoyed an improved second quarter.

[Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International]

The Angelica's first of its kind cinema takeover by director Wes Anderson's The Phoenician Scheme offered offered moviegoers an exclusive and immersive experience throughout the theater and was the main driver of our cash flow improvement. Along with The Phoenician's Game, we saw success from specialty films such as a twenty four's Friendship and Watermelon Pictures Encampments, which both drove increased revenue in attendance from last year. And as we mentioned last quarter, we expect by the '25 to upgrade one of our major cinemas with 10 screens of recliner seats and the addition of a Titan Luxe premium screen. And now touching on our cinemas in Australia and New Zealand. Following the second quarter twenty twenty five box office industry trends and compared to the second quarter of last year, our Australian cinema revenue increased 24% to $22,900,000 and our operating income increased to $2,900,000 from an operating loss of $87,000 Our New Zealand cinema revenue increased 24% to $3,600,000 and our operating income increased 354% to $241,000 from an operating loss of 95,000.

[Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International]

In addition to great success in our F and B program, like in The US, our Australian and New Zealand cinemas delivered the highest average ticket price of all time at $16.34 in Australia, which is in functional currency, and in New Zealand dollars, $14.70. Now let's turn to our global real estate business, which on a segment reporting basis includes not only our third party rental income, but also our live theater business in New York and our intercompany rents. Let's start with the second quarter twenty twenty five global results. At $4,700,000 our global real estate total revenue decreased 7% from 5,000,000 in second quarter last year. And at $1,500,000 our total operating income increased 56% and represents the best second quarter since 2018 and was 10% higher than Q2 twenty nineteen's operating income.

[Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International]

The results were positively impacted by the cash flow from our U. S. Live theater business and also reflected our property asset sales in Townsville, Australia and in Wellington, New Zealand, which has resulted in less rental revenues and income. Breaking it down by division, for the second quarter of this year, our Australian real estate business reported revenue decreases of 14% to $2,700,000 and an 8% decrease in operating income of $1,300,000 for the '25. Our New Zealand real estate revenue of $212,000 decreased by 40 percent compared to the second quarter of last year and our New Zealand real estate operating income of $52,000 increased by 117% from a loss of $311,000 in the '24.

[Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International]

With respect to our Australian and New Zealand portfolio, as of 06/30/2025, due to our property asset sales in Wellington, New Zealand and Townsville, Australia, Cannon Park, the number of our third party tenants in our combined Australian New Zealand real estate portfolio reduced to 59 and is now primarily made up of tenants at Newmarket Village in Brisbane and the Belmont Common in Perth. The quality of the remaining tenants is strong and today we have an occupancy rate of 99%. For the second quarter, our combined third party tenant sales from Australian real estate, measured in functional currency was $24,500,000 During the quarter, we successfully executed fifteen third party leases. This was comprised of five leases to new and what we believe to be dynamic tenants, two new leases with existing tenants, four lease renewals, which included a 10 lease renewal to a key anchor tenant, and four lease assignments and or variations. Turning to our US real estate business, which includes our two live theaters in New York City.

[Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International]

It delivered a 15% increase in revenue and a 144% increase in operating income from a loss of $204,000 in the second quarter of last year. Our live theater business powered the quarter with improved results. At the Mineta Lane Theater on a quarter over quarter basis, our attendance increased by 201% and the theater level cash flow by 215%, which is largely attributed to two successful shows produced by Audible, the Amazon company which is a licensee of our Mineta Lane Theater. Sexual misconduct of the middle classes, a New York Times critic pick starring Hugh Jackman, and creditors, another critically acclaimed and successful show starring Leiv Shriver, both at the Mineta Lane this past quarter. At the Orpheum Theater, our goal remains to secure another long running production similar to Stomp.

[Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International]

In the meantime, we're showcasing popular, captivating, and profitable shows that strongly connect with our East Village audience. Currently, the Orpheum Theater's most recent show, ginger twinsies, has received strong praise as it expected to sustain a run through the end of the '25. We received inquiries from stockholders about the leasing efforts at 44 Union Square. Before I start on our leasing updates, let me first mention a recently issued 2025 Union Square commercial report from the Union Square partnership that highlights some very positive momentum in the Union Square area. First, they mentioned that worker visits to Union Square are surging.

[Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International]

Monthly worker visits reached a post pandemic high of 444,000 in October 2024, a 20 123% of January 2020 levels. This remarkable rebound in worker foot traffic outpaced the average worker visit recovery of 90% for the Midtown Manhattan businesses in their improvement districts. According to Colliers, overall leasing activity in Midtown South is up with total leasing volume for 2024 reaching 11,610,000 square feet, the strongest annual demand since 2019. And storefront occupancy reached 88.5% as of June 2025. So let's turn to our specific leasing updates at 44 Union Square.

[Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International]

As we previously reported, we've signed a nonexclusive letter of intent and have exchanged lease drafts with one potential tenant, which would offer a non office use. However, as we just talked about the leasing office leasing market improving in our area, we've experienced increased interest from potential office users and are currently negotiating other letters of intent with potential office tenants with the objective of getting the best deal possible for our space. Turning to another US based asset, our property in Williamsport, Pennsylvania. It continues to be held for sale. Its highest and best value is as a railroad property, a market in which there are limited qualified players, but we believe also limited asset availability.

[Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International]

We're moving to adopt a more aggressive outreach marketing program. So that concludes my report on the most important events over the last few months. In summary, despite facing significant challenges over the last five years, the company has remained focused on preserving our global theaters and preserving stockholder equity by closing underperforming venues, reducing expenses, and selling select real estate assets to significantly reduce overall debt. At the same time, our cinema teams have implemented strategic initiatives to increase revenue and improve cost efficiency, while our global real estate teams have established a strong base of reliable and dynamic third party tenants. As interest rates become more favorable in Australia and New Zealand and potentially in The United States later this year, Along with the more stable lineup of Hollywood releases, we believe Reading is well positioned for a stronger growth in '26 2026 and beyond.

[Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International]

Now that wraps it up for me. And before I turn it over to Gilbert, Margaret and I would like to express our heartfelt appreciation to the entire management team and all of our employees. Your unwavering dedication, professionalism, and tireless efforts have been instrumental in keeping the company moving forward and staying true to its long term vision. With that, I'll turn it over to Gilbert.

[Gilbert Avanes, EVP, CFO, and Treasurer at Reading International]

Thank you, Ellen. Consolidated revenue for the quarter ended 06/30/2025 increased by $13,600,000 to $60,400,000 when compared to the 2024. Consolidated revenue for the six months ended 06/30/2025, increased by $8,700,000 to $100,500,000 when compared to the same period of 2024. These increases are due to stronger movie related released from the Hollywood studios, including higher performing titles such as Minecraft movie, Sinners, Lilo and Stitch, Mission Impossible and Thunderbolts, partially offset by slight decrease in real estate revenue because of the revenues lost from our asset monetization. Net loss attributable to Reading International Inc.

[Gilbert Avanes, EVP, CFO, and Treasurer at Reading International]

For the quarter ended 06/30/2025, decreased by $10,100,000 to a loss of $2,700,000 compared to a loss of $12,800,000 in Q2 twenty twenty four. Q2 twenty twenty five basic loss per share decreased by $0.45 to a basic loss per share of $0.12 compared to the basic loss per share of $0.57 for the Q2 twenty twenty four. These improved results were primarily due to improved cinema and real estate performance, the $1,000,000 reduction in interest expense and the $1,800,000 gain on sale of our Cannon Park property compared to the same period in prior year. Net loss attributable to Reading International Inc. For the six months ended 06/30/2025, decreased by $18,600,000 for a loss of $26,000,000 to a loss of $7,400,000 when compared to the same period in the prior year.

[Gilbert Avanes, EVP, CFO, and Treasurer at Reading International]

Basic loss per share decreased by $0.83 to a loss of $0.33 compared to a loss of $1.16 for the first six months of 2024. These results were primarily due to strengthened segment's result, a $1,600,000 reduction in interest expense and a $9,500,000 increase in gain on sale of asset as a result of gain on selling of Courtenay Central and Ken Park property in 2025 compared to a loss on selling our previously owned Culver City office in twenty twenty twenty four. Net loss decreases from both quarter to date and year to date are partially offset by increased tax expense and other expenses. The other expenses increase arose from the foreign exchange differences in the inter call loans from Australia and New Zealand to The U. S.

[Gilbert Avanes, EVP, CFO, and Treasurer at Reading International]

Our total company depreciation and amortization, impairment and general and administrative expenses for the quarter ended 06/30/2025, decreased by 500,000.0, 8,800,000.0 compared to q two twenty twenty four. For the six months ended 06/30/2025 decreased by 1,600,000.0 to 17,300,000.0 compared to the same period in prior year. These decreases were primarily due to decreases in depreciation and amortization as a result of the sale of our Courtenay Central in January 2025 and the sale of our Ken property in May 2025. On 07/04/2025, one big beautiful bill act was enacted in The United States and includes significant tax law changes, including the permanent extension of certain provisions from the Tax Cuts and Jobs Act modification to the international tax framework and the reinstatement of favorable business tax provisions. These include 100% bonus depreciation, immediate expensing of Section 174 domestic research and experimental expenditures and revised limitation under Section 163 ks on the deductibility of business interest expense.

[Gilbert Avanes, EVP, CFO, and Treasurer at Reading International]

The legislation has multiple effective dates with certain provisions affecting beginning in 2025 and others implemented through 2027. We do not anticipate the impact of this bill to have any material effect on our consolidated financial statement for the year ended 12/31/2025. Income tax expense for the three month ended 06/30/2025, increased by $1,400,000 compared to the equivalent prior year period. The change between 2025 and 2024 is primarily related to a decrease in consolidated losses and an increase in reserve for valuation allowance in 2025. Income tax expense for the six months ended 06/30/2025, increased by $1,100,000 compared to the equivalent prior year period.

[Gilbert Avanes, EVP, CFO, and Treasurer at Reading International]

The change between 2025 and 2024 is primarily related to a decrease in consolidated losses and an increase in reserve for valuation allowance in 2025. For the 2025, our adjusted EBITDA increased by $9,900,000 to an income of $6,300,000 from a loss of 3,600,000 compared to Q2 twenty twenty four. For the six months ended 06/30/2025, our adjusted EBITDA increased by 16,700,000.0 to an income of $9,200,000 compared to the same prior year period. These results were primarily the results of improved operational performance and gains from asset monetization, as mentioned previously. Shifting to cash flows.

[Gilbert Avanes, EVP, CFO, and Treasurer at Reading International]

For the six months ended 06/30/2025, net cash used in operating activities decreased by $7,000,000 to $6,200,000 compared to the cash used in the six months ended 06/30/2024 of $13,200,000 This was primarily driven by a $13,500,000 decrease in net operating losses, partially offset by $6,500,000 decrease in net payables compared to the same period in 2024. Cash provided by investing activities during the six months ended 06/30/2025, increased by $30,400,000 to $37,800,000 compared to cash provided in the six months ended 06/30/2024, of 7,400,000.0 This was due to higher proceeds from sale of our Ken Park property assets in May 2025 and our Wellington property assets in January 2025 compared to the proceeds from sale of our Culver City office in February 2024. Cash used in financing activities for the six months ended 06/30/2025, increased by 36,000,000 to $34,900,000 compared to cash provided in the six months ended 06/30/2024, of $1,100,000 This was primarily due to the paydown of our Westpac debt and NAB Bridge facility in 2025 compared to the NAB Bridge facility drawn in the same period of 2024. Turning now to our financial position. Our total assets in 06/30/2025, were $438,100,000 compared to $471,000,000 in 12/31/2024.

[Gilbert Avanes, EVP, CFO, and Treasurer at Reading International]

This decrease was driven by $3,300,000 decrease in cash and cash equivalent from which we fund their ongoing business operations, dollars 1,900,000.0 decrease in receivables, dollars 31,900,000.0 decrease in land and property held for sale due to the sale of our Tennant Park and Courtenay Central asset. As of 06/30/2025, our total outstanding borrowings were $173,400,000 compared to $202,700,000 on 12/31/2024. Our cash and cash equivalent as of 06/30/2025, were $9,100,000 Further to address liquidity pressure on our business, we continue to work with our lenders to amend certain debt facilities, and we have our Newbury Yard Williamsport, Pennsylvania property classified as held for sale. As already mentioned, during the 2025, we completed the monetization of our Cannon Park property in Queensland, Australia for $32,000,000 The proceeds were used to pay off our NAB bridge facility, permanently paid down Australian $1,500,000 on our Australian corporate loan facility and to reduce our Bank of America debt by $1,500,000 As we have with other monetized asset, we retained a lease over the cinema. We recorded a 1,800,000 gain on the sale.

[Gilbert Avanes, EVP, CFO, and Treasurer at Reading International]

During the second quarter and the beginning of 2025, we made progress with our lenders on the following financial arrangements. On 05/02/2025, we extended the maturity date of our Emerald Creek Capital loan to 11/06/2026 with an option to extend further to 05/06/2027. We paid down $500,000 of the loan balance in May 2025. On 05/21/2025, we sold our Cannon Park property asset in Australia and repaid AUD 20,000,000 NAV bridge facility as mentioned previously. On 07/03/2025, we extended the maturity date of our Bank of America loan to 05/18/2026 and modified the principal repayment schedule.

[Gilbert Avanes, EVP, CFO, and Treasurer at Reading International]

On 07/18/2025, we extended the maturity date of our Santander loan to 06/01/2026. We also paid down 100,000 on the loan at Sining. With that, I will now turn it over to Andre.

[Andrzej Matyczynski, Executive Vice President of Global Operations at Reading International]

Thanks, Gilbert. First, I'd like to thank our stockholders for forwarding questions to our Investor Relations email. As usual, in addition to addressing many of your questions in the prepared remarks from Ellen and Gilbert, we selected a few additional questions to offer some more insights from management. The first question which Helen will address, why was Rotorua land and improvements removed from held for sale in late twenty twenty four? In what way did you change your views about the property's long term prospects? Ellen?

[Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International]

We initially classified Rotorua as an asset held for sale as we believed it could be sold at a reasonable price and could assist in our overall debt reduction strategy. However, this asset, which is located in a regional area of New Zealand, and at the time we listed the asset for sale, which was a challenging period for New Zealand commercial real estate, it failed to attract the attention that we would, what that we thought, would merit a sale of the asset. So we officially took it off the market. Today, the asset continues to generate reasonable cash flow for us, so we continue to believe, in the merit of the property as part of our overall cinema circuit in New Zealand.

[Andrzej Matyczynski, Executive Vice President of Global Operations at Reading International]

Thanks, Helen. The next question, what is NAB's appetite for longer dated facility given lower leverage and increased Australian cash flow from cinema segment rebound? Gilbert?

[Gilbert Avanes, EVP, CFO, and Treasurer at Reading International]

We are currently working with NAB on a longer term extension. We've been banking with NAB since 02/2011. And as an institution, we believe we have a good working relationship with them. They're familiar with our industry and our specific assets and businesses. While we can provide no assurance that the long term extension will be completed, we're working towards having something in place within the next few months.

[Andrzej Matyczynski, Executive Vice President of Global Operations at Reading International]

Thanks, Gilbert. The post the property sale, what are the landlord's seismic upgrade timeline commitments and current status versus those commitments? This refers to the Courtney asset in New Zealand. Has the new owner owner started seismic work, and when is it expected to be deliverable to Reading for its leasehold improvements? What are Reading's estimated leasehold improvement costs for the upgrades you plan for reopening this cinema?

[Andrzej Matyczynski, Executive Vice President of Global Operations at Reading International]

And what are these up upgrades and expected duration requirements for Reading's completion once a Seismically Sound Cinema is presented to you. Ellen?

[Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International]

The Prime Property Group in New Zealand in Wellington is the new owner of the Courty Central Building. They're advancing their plans to seismically upgrade the formal former Courtenay Central Building. They're currently working with registered engineers to finalize the seismic design with an anticipated upgrade to be completed sometime in 2026. The cinema renovation is gonna be a significant transformation for us. We're upgrading to recliner seating.

[Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International]

We're, creating premium screen experiences and performing a lobby and F and B upgrades. We'll start the fit out process immediately following the completion of Prime's upgrade work. And while we don't disclose specific budget figures, the investment in the new or in the renovated Reading Cinema according to central will be several million dollars in line with our best in class standards. The target for reopening is late twenty six or early twenty seven. However, as we don't control the development process and the works, we can't give any assurances that we'll actually meet the schedule.

[Andrzej Matyczynski, Executive Vice President of Global Operations at Reading International]

Thanks, Helen, for that answer. And as usual, we'll finalize the conference call with one final question, which I will field regarding will there be an investor relations day as promised earlier in the year? Well, we do not currently have an investor relations day scheduled. However, management is actively evaluating all future investor relations opportunities, which include non deal road shows, virtual or otherwise, more conference participation, as well as a potential investor relations meeting. As our COVID recovery and that of our industry continues and the shape of our adapted company becomes more apparent, all the above venues will provide an excellent opportunity to share the future potential growth prospects with both new and existing stakeholders.

[Andrzej Matyczynski, Executive Vice President of Global Operations at Reading International]

So that marks the conclusion of this, our second conference call for 2025, a year which continues to see a gradual resurgence of the breadth and depths of the cinematic experience, which we aspire to translate into enhanced value for all our stockholders. We appreciate you listening to the call today. Thank you for your attention and support. We wish everyone good health and safety, and we'll see you at our movie venues.

Participants

Executives

• Andrzej Matyczynski, Executive Vice President of Global Operations
• Gilbert Avanes, EVP, CFO, and Treasurer

Analysts

• Ellen Cotter, President, CEO & Vice-Chair of the Board at Reading International