CEC Entertainment , the parent of Chuck E Cheese’s, latest set of first half and second quarter financial results have benefitted from its All You Can Play offering.
For the six-month period ended June 30, 2019, comparable venue sales increased 4.5 per cent over the prior year period with total revenues increasing from US$472.3m to $488.5m.
While its second quarter 2019 results were negatively impacted by the shift of the Easter holiday and several spring breaks into the second quarter in 2019 instead of the first quarter in 2018, comparable venue sales increased 0.5% in the second quarter of 2019.
For the second quarter of 2019, total revenues decreased one per cent, $2.2m, which was primarily attributable to net breakage related to PlayPass of $1.3m following the 2018 introduction of All You Can Play, its time-based play offering.
The company reported a net loss of $8.7m for the second quarter of 2019, compared to a net loss of $9.0m the previous year. This positive impact was due to an increase in company-operated venue sales and lower food and beverage costs, driven by favourability in commodity prices and volume.
“We posted our fifth consecutive quarter of comparable venue sales growth in the second quarter of 2019, driven by the positive impact of the All You Can Play and More Tickets initiatives,” said Tom Leverton, chief executive officer. “We are pleased with our results for the first half of 2019 and our flow through to earnings despite continued pressures from wage growth. We remain optimistic about the growth prospects in the business going forward.”
