Theatre promoter Reach4entertainment revenues drop in first half after difficult 2017
Investors were not giving theatre communications group Reach4entertainment a standing ovation this morning as shares dropped after it reported declining revenues.
Its share price lost 1.75 per cent in early trading after it said revenues were on the decline after a difficult 2017.
The figures
Revenue slipped from £41.9m the same time last year to £36m for the six months up to 30 June 2018.
Adjusted earnings rose 25 per cent to £500,000, as it posted a total operating loss of £500,000.
Why it's interesting
The company runs promotion and marketing for a number of popular West End shows, including Dreamgirls, the Lion King and 42nd Street under its agencies, Dewynters, Wake The Bear, and Jampot Consulting.
But all is not well in theatre land, as it has struggled to pick business up after a difficult 2017. Shrinking audiences have made for an unimpressive first act in 2018. Reach4entertainment says it is even increasing its non-live theatre clients in efforts to rouse its audience in the next half of the year .
The Aim-listed firm will also be hoping its success winning business for 15 new Broadway musicals including Beetlejuice and Park Avenue Amory will turnaround profits in 2019.
What Reach4entertainment said
Marc Boyan, Reach4entertainment boss, said:
The group is now in a much stronger position following a difficult 2017. The new management team has been successful in stabilising the traditional business during the first half of the year, and the recent spate of new Broadway musicals won by SpotCo is highly encouraging.
Importantly, we have also made good progress with the strategy of utilising the group’s skill set and deploying them into new segments, evidenced by work across the group with non-live entertainment clients.
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