UK based bowling site operator Ten Entertainment Group PLC (LON: TEG) announced sales growth and site acquisitions during the first half, and partially attributed its positive figures to digital marketing success.
The Group saw sales and like-for-like sales growth of 9.6% and 7.4% respectively, during the first half. The Company said growth in LFL sales remained stable and it owed the recent improvement to the extended period of hot weather conditions during May and June 2019.
It added that it had expanded its estate with acquisitions of sites in Southport in Q1 and Falkirk in Q2. Both sites are existing bowling facilities, which will now undergo ‘Tenpinisation’ before contributing to profits in 2020. Ten Entertainment sites now number at 45.
Ten Entertainment comments
Company Chief Executive Officer, Duncan Garrod, attached the following comments to the update,
“The business has shown strong growth in the first half driven by the continuous improvement of the quality of the customer proposition and accelerated investment in digital marketing.”
“Our expansion plans are on track with the acquisition of two sites in H1 and we are very focused on acquiring further sites in H2. We look forward to delivering another year of profitable progress.”
“The business has accelerated its focus on investment in the foundations of improved customer experience; more targeted marketing and online activity; and product innovation in the first half. These investments will drive long term growth and will begin to show benefits towards the end of the second half.”
“Group adjusted EBITDA performance for the first half is expected to be in in line with our expectations, and the business is on track to meet our expectations for the full year.”
The Company’s share price has rallied during morning trading by 3.45% or 8p to 240p a share 12:02 GMT. Liberum Capital and Peel Hunt analysts both reiterated their respective ‘Buy’ stances on Ten Entertainment stock.