Reading International (NASDAQ:RDI) reported stronger second-quarter results as an improved film slate, growth in Australian cinema operations, higher live theater revenue and a stronger Australian dollar lifted revenue and profitability.
Chief Financial Officer and Treasurer Gilbert Avanes said consolidated revenue rose $6.5 million from the prior-year quarter to $66.9 million. Net income attributable to Reading International was $2.3 million, compared with a $2.7 million loss a year earlier. Basic earnings per share was $0.10, compared with a $0.12 loss per share in the prior-year period.
Cinema Results Drive Improvement
Global cinema revenue increased 11% year over year to $63 million, while cinema operating income rose 68% to $9.2 million. President and CEO Ellen Cotter said the improvement was driven primarily by the Australian circuit, execution of strategic initiatives and the strengthening Australian dollar.
Australia’s cinema revenue increased 31% to AUD 30 million, setting a quarterly record for the circuit, while operating income rose 91% to AUD 5.6 million. New Zealand cinema revenue declined 2% to NZD 3.5 million, though operating income increased 61% to NZD 387,000.
The company cited titles including Michael, The Super Mario Galaxy Movie, The Devil Wears Prada 2 and Toy Story 5 as major contributors in Australia. Four films surpassed AUD 2 million in gross receipts in the Australian circuit during the quarter, compared with two films in the second quarter of 2025.
Reading’s U.S. cinema revenue declined 3%, but operating income improved 40%. Cotter said the revenue decline reflected strong comparisons against the prior year’s Lilo & Stitch and A Minecraft Movie, the closures of two San Diego theaters, and weaker programming at certain art-house locations.
The company said its Hawaii theaters accounted for about 35% of U.S. cinema revenue over the past two years. Reading closed its Grossmont theater in June 2026 and had previously closed a San Diego-area theater in April 2025. Since the pandemic began, the company has reduced its global theater count by nine locations, all of which it described as unprofitable.
- Adjusted EBITDA rose 79% to $11.3 million in the second quarter.
- Operating income increased to $7.5 million from $2.9 million in the prior-year quarter.
- Total segment operating income rose 55% to $10.7 million.
- For the first six months of 2026, revenue increased $11.5 million to $112 million and adjusted EBITDA rose $1.2 million to $10.4 million.
Food, Loyalty and Theater Upgrades
Cotter said Reading continued to expand food and beverage offerings, including movie-themed menus and merchandise. Australia and New Zealand established food-and-beverage spending-per-patron records during periods when their circuits were fully operational, while U.S. food-and-beverage spending per patron reached $8.97, the company’s third-highest quarterly result for that measure.
The company also reported growth in loyalty programs. Its relaunched Reading Rewards program in Australia and New Zealand had more than 625,000 members at the end of the quarter, up 27% from the first quarter. Paid memberships in those markets exceeded 41,000 during the quarter, up 72% sequentially.
In the U.S., Reading said it had signed up 41,000 rewards members and 2,500 paid members since launching programs at six Hawaii theaters and three Reading Cinemas beginning in late 2025 and early 2026. Its free Angelika membership program had about 190,000 members across eight Angelika-branded theaters, and the company expects to launch a premium Angelika monthly membership before year-end.
Reading completed a renovation at its Valley Plaza Mall theater in Bakersfield, California, during the first quarter. The project included a Titan Luxe screen, Dolby Atmos, luxury recliners and recliner conversions in other auditoriums. Revenue at that theater increased 43% in the second quarter, the company said.
The company also plans to refurbish seats across its U.S. circuit through 2026 and into 2027. In New Zealand, Reading expects to undertake a major renovation of its Wellington cinema after its landlord completes a seismic upgrade, which the company expects in six to nine months. Reading anticipates a late-2027 reopening following its fit-out.
Real Estate, Asset Sales and Debt
Global real estate revenue increased 4% to $4.9 million, while operating income rose 7% to $1.6 million. U.S. real estate revenue increased 11% to $1.9 million, with operating income more than doubling to $183,000. Cotter attributed the U.S. improvement primarily to stronger live theater performance.
The Minetta Lane Theatre hosted productions including Sexual Misconduct of the Middle Classes, Newborn and What Happened Was. The Orpheum Theatre benefited from continuing demand following the departure of Stomp, including an extended run of 11 to Midnight.
At 44 Union Square in New York, Reading said four floors remain available for lease. The company has re-engaged Newmark to market the space and said potential tenant interest has included wellness, education, entertainment and co-working uses.
Reading is also working toward a sale of its Cinema 1, 2 and 3 building on Manhattan’s Upper East Side. Cotter said the company had narrowed the buyer field to a preferred residential developer and was working on definitive documentation. The company expects, but cannot assure, that a sales contract will be executed shortly and that closing could occur in early fourth quarter.
If completed, Cotter said proceeds would first be used to repay approximately $19.7 million of Valley National debt, which carries about $2 million of annual interest expense, and approximately $5.4 million remaining on the Bank of America-Bank of Hawaii facility, which carries annualized interest expense of about $650,000. Remaining proceeds could be used for further debt reduction, cinema renovations and operating accruals.
As of June 30, Reading had $183.1 million in gross outstanding borrowings and $5.7 million in cash and cash equivalents. The company said it has worked with lenders to extend maturities, revise repayment schedules and adjust covenants. Its Bank of America facility was extended to Dec. 21, 2026, while its Santander loan was extended to Oct. 1, 2026.
Avanes said the company believes it has a replacement lender for the Santander financing and is working through due diligence and administrative steps. He said Reading expects a new arrangement to be in place in the coming months, though the company provided no assurance that the refinancing would be completed.
About Reading International (NASDAQ:RDI)
Reading International, 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.
