READING INTERNATIONAL INC Segments Disclosure
We report information about operating segments in accordance with ASC 280-10 Segment Reporting, which requires financial information to be reported based on the way management organizes segments with a company for making operating decisions and evaluating performance. We have organized our business into two reportable segments, being cinema exhibition and real estate.
Our cinema exhibition segment aggregates all our cinemas, both leased and owned, across the United States, Australia and New Zealand. Each of our cinemas earns revenue through the sale of movie tickets, food and beverage, screen advertising, theatre rentals, merchandise, gift card and loyalty membership, and other ancillary sales. The segment also earns revenue through service fees related to online ticket sales. Expenses are incurred through film rent, wages and salaries, food and beverage costs, occupancy costs, utilities, and other ancillary costs. We further organize this segment by geography, as while all our cinemas are engaged in substantially the same business activities, each geography is subject to its own unique regulatory and business conditions.
Our real estate segment aggregates all our retail, commercial and live theatre real estate assets across Australia, New Zealand, and the United States. Our retail and commercial real estate assets earn revenue through the leasing or licensing of space to third party tenants.
Our live theatre assets in the United States earn revenue through leasing or licensing space to third party production companies, an activity we consider sufficiently similar to our broader real estate base to support inclusion in our real estate segment. Our live theatre operations also earn revenue by providing front of house and box office services and through concession sale of food and beverage. All of our real estate assets incur expenses from property maintenance, utilities, taxes, and other costs of maintaining real estate and in some cases third party property management.
Each of these segments has discrete and separate financial information and for which operating results are evaluated regularly by our President, Chief Executive Officer and Vice Chair of the Board of Directors, the chief operating decision-maker (“CODM”) of the Company. The CODM is responsible for the allocation of resources to, and the assessment of the performance of, our operating segments. The CODM determines, among other things:
-the execution, renewal or termination of cinema leases
-the execution, renewal or termination of third-party tenant leases
-significant capital expenditures
-internal resource allocation
-operational budgets.
Segment operating income is a key measure of profit or loss used by the CODM to assess segment performance and allocate resources. Segment operating income includes certain amounts charged by our real estate segment to our cinema exhibition segment where a cinema is a tenant of the real estate segment. These charges are eliminated for consolidated financial statement purposes in the consolidated income statement but are presented gross to the CODM.
The tables below summarize the results of operations for each of our business segments, presenting a reconciliation of segment revenue to operating segment income, and the impact of inter-segment transactions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2025 |
| 2024 |
| 2023 | |||||||||||||||||||||
(Dollars in thousands) |
| Cinema |
| Real |
| Total |
| Cinema |
| Real |
| Total |
| Cinema |
| Real |
| Total | |||||||||
Revenue - third party |
| $ | 188,603 |
| $ | 14,385 |
| $ | 202,988 |
| $ | 195,130 |
| $ | 15,397 |
| $ | 210,527 |
| $ | 207,641 |
| $ | 15,103 |
| $ | 222,744 |
Inter-segment revenue (1) |
|
| — |
|
| 4,036 |
|
| 4,036 |
|
| — |
|
| 4,609 |
|
| 4,609 |
|
| — |
|
| 4,767 |
|
| 4,767 |
Total segment revenue |
|
| 188,603 |
|
| 18,421 |
|
| 207,024 |
|
| 195,130 |
|
| 20,006 |
|
| 215,136 |
|
| 207,641 |
|
| 19,870 |
|
| 227,511 |
Operating expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expense - Third Party |
|
| (168,328) |
|
| (7,463) |
|
| (175,791) |
|
| (179,377) |
|
| (9,243) |
|
| (188,620) |
|
| (187,418) |
|
| (8,763) |
|
| (196,181) |
Inter-Segment Operating Expenses (1) |
|
| (4,036) |
|
| — |
|
| (4,036) |
|
| (4,609) |
|
| — |
|
| (4,609) |
|
| (4,767) |
|
| — |
|
| (4,767) |
Total of services and products (excluding depreciation and amortization) |
|
| (172,364) |
|
| (7,463) |
|
| (179,827) |
|
| (183,986) |
|
| (9,243) |
|
| (193,229) |
|
| (192,185) |
|
| (8,763) |
|
| (200,948) |
Depreciation and amortization |
|
| (8,457) |
|
| (4,314) |
|
| (12,771) |
|
| (10,232) |
|
| (5,160) |
|
| (15,392) |
|
| (11,335) |
|
| (6,376) |
|
| (17,711) |
General and administrative expense |
|
| (4,139) |
|
| (727) |
|
| (4,866) |
|
| (3,709) |
|
| (924) |
|
| (4,633) |
|
| (3,997) |
|
| (940) |
|
| (4,937) |
Total operating expense |
|
| (184,960) |
|
| (12,504) |
|
| (197,464) |
|
| (197,927) |
|
| (15,327) |
|
| (213,254) |
|
| (207,517) |
|
| (16,079) |
|
| (223,596) |
Segment operating income (loss) |
| $ | 3,643 |
| $ | 5,917 |
| $ | 9,560 |
| $ | (2,797) |
| $ | 4,679 |
| $ | 1,882 |
| $ | 124 |
| $ | 3,791 |
| $ | 3,915 |
(1)Inter-segment Revenues and Operating Expense relates to the internal charge between the two segments where the cinema operates within real estate owned within the group.
A reconciliation of cinema exhibition segment revenue to segment operating income for the financial years ended December 31, 2025, 2024 and 2023 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year Ended | |||||||
(Dollars in thousands) |
| December 31, 2025 |
| December 31, 2024 |
| December 31, 2023 | |||||
REVENUE |
|
|
|
|
|
|
|
|
| ||
| United States | Admissions revenue |
| $ | 54,214 |
| $ | 55,782 |
| $ | 63,662 |
|
| Concessions revenue |
|
| 35,523 |
|
| 34,314 |
|
| 38,884 |
|
| Advertising and other revenue |
|
| 9,751 |
|
| 9,842 |
|
| 11,252 |
|
|
|
| $ | 99,488 |
| $ | 99,938 |
| $ | 113,798 |
|
|
|
|
|
|
|
|
|
|
|
|
| Australia | Admissions revenue |
| $ | 47,414 |
| $ | 48,186 |
| $ | 48,630 |
|
| Concessions revenue |
|
| 24,373 |
|
| 27,670 |
|
| 26,119 |
|
| Advertising and other revenue |
|
| 5,949 |
|
| 6,176 |
|
| 5,276 |
|
|
|
| $ | 77,736 |
| $ | 82,032 |
| $ | 80,025 |
|
|
|
|
|
|
|
|
|
|
|
|
| New Zealand | Admissions revenue |
| $ | 7,256 |
| $ | 7,663 |
| $ | 8,509 |
|
| Concessions revenue |
|
| 3,541 |
|
| 4,375 |
|
| 4,585 |
|
| Advertising and other revenue |
|
| 582 |
|
| 1,122 |
|
| 724 |
|
|
|
| $ | 11,379 |
| $ | 13,160 |
| $ | 13,818 |
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenue |
| $ | 188,603 |
| $ | 195,130 |
| $ | 207,641 | |
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSE |
|
|
|
|
|
|
|
|
| ||
| United States | Film rent and advertising cost |
| $ | (28,971) |
| $ | (30,315) |
| $ | (34,182) |
|
| Food & beverage cost |
|
| (9,108) |
|
| (9,071) |
|
| (10,070) |
|
| Occupancy expense |
|
| (16,962) |
|
| (22,516) |
|
| (25,090) |
|
| Labor cost |
|
| (16,482) |
|
| (17,323) |
|
| (17,397) |
|
| Utilities |
|
| (5,413) |
|
| (5,973) |
|
| (6,856) |
|
| Cleaning and maintenance |
|
| (6,670) |
|
| (6,664) |
|
| (8,155) |
|
| Other operating expenses |
|
| (8,665) |
|
| (7,948) |
|
| (9,459) |
|
|
|
| $ | (92,271) |
| $ | (99,810) |
| $ | (111,209) |
|
|
|
|
|
|
|
|
|
|
|
|
| Australia | Film rent and advertising cost |
| $ | (21,081) |
| $ | (22,124) |
| $ | (21,814) |
|
| Food & beverage cost |
|
| (5,290) |
|
| (6,141) |
|
| (5,609) |
|
| Occupancy expense |
|
| (17,708) |
|
| (18,086) |
|
| (17,207) |
|
| Labor cost |
|
| (13,613) |
|
| (14,040) |
|
| (13,243) |
|
| Utilities |
|
| (3,207) |
|
| (2,861) |
|
| (2,545) |
|
| Cleaning and maintenance |
|
| (4,614) |
|
| (5,069) |
|
| (4,696) |
|
| Other operating expenses |
|
| (3,342) |
|
| (3,597) |
|
| (3,313) |
|
|
|
| $ | (68,855) |
| $ | (71,918) |
| $ | (68,427) |
|
|
|
|
|
|
|
|
|
|
|
|
| New Zealand | Film rent and advertising cost |
| $ | (3,313) |
| $ | (3,474) |
| $ | (3,858) |
|
| Food & beverage cost |
|
| (733) |
|
| (947) |
|
| (911) |
|
| Occupancy expense |
|
| (2,883) |
|
| (3,106) |
|
| (3,081) |
|
| Labor cost |
|
| (2,115) |
|
| (2,385) |
|
| (2,417) |
|
| Utilities |
|
| (501) |
|
| (394) |
|
| (435) |
|
| Cleaning and maintenance |
|
| (759) |
|
| (886) |
|
| (971) |
|
| Other operating expenses |
|
| (934) |
|
| (1,066) |
|
| (876) |
|
|
|
| $ | (11,238) |
| $ | (12,258) |
| $ | (12,549) |
|
|
|
|
|
|
|
|
|
|
|
|
| Total operating expense |
| $ | (172,364) |
| $ | (183,986) |
| $ | (192,185) | |
|
|
|
|
|
|
|
|
|
|
|
|
DEPRECIATION, AMORTIZATION, GENERAL AND ADMINISTRATIVE EXPENSE |
|
|
|
|
|
|
|
|
| ||
| United States | Depreciation and amortization |
| $ | (4,403) |
| $ | (5,011) |
| $ | (5,911) |
|
| General and administrative expense |
|
| (2,594) |
|
| (2,368) |
|
| (2,502) |
|
|
|
| $ | (6,997) |
| $ | (7,379) |
| $ | (8,413) |
|
|
|
|
|
|
|
|
|
|
|
|
| Australia | Depreciation and amortization |
| $ | (3,623) |
| $ | (4,763) |
| $ | (4,824) |
|
| General and administrative expense |
|
| (1,355) |
|
| (1,325) |
|
| (1,495) |
|
|
|
| $ | (4,978) |
| $ | (6,088) |
| $ | (6,319) |
|
|
|
|
|
|
|
|
|
|
|
|
| New Zealand | Depreciation and amortization |
| $ | (432) |
| $ | (458) |
| $ | (600) |
|
| General and administrative expense |
|
| (189) |
|
| (16) |
|
| — |
|
|
|
| $ | (621) |
| $ | (474) |
| $ | (600) |
|
|
|
|
|
|
|
|
|
|
|
|
| Total depreciation, amortization, general and administrative expense |
| $ | (12,596) |
| $ | (13,941) |
| $ | (15,332) | |
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME (LOSS) - CINEMA |
|
|
|
|
|
|
|
|
| ||
| United States |
| $ | 220 |
| $ | (7,251) |
| $ | (5,824) | |
| Australia |
|
| 3,903 |
|
| 4,026 |
|
| 5,279 | |
| New Zealand |
|
| (480) |
|
| 428 |
|
| 669 | |
| Total Cinema operating income (loss) |
| $ | 3,643 |
| $ | (2,797) |
| $ | 124 | |
A reconciliation of real estate segment revenue to segment operating income for the financial years ended December 31, 2025, 2024 and 2023 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year Ended | |||||||
(Dollars in thousands) |
| December 31, 2025 |
| December 31, 2024 |
| December 31, 2023 | |||||
REVENUE |
|
|
|
|
|
|
|
|
| ||
| United States | Live theater rental and ancillary income |
| $ | 2,638 |
| $ | 2,024 |
| $ | 1,803 |
|
| Property rental income |
|
| 4,243 |
|
| 4,221 |
|
| 4,395 |
|
|
|
|
| 6,881 |
|
| 6,245 |
|
| 6,198 |
| Australia | Property rental income |
|
| 10,659 |
|
| 12,341 |
|
| 12,163 |
| New Zealand | Property rental income |
|
| 881 |
|
| 1,420 |
|
| 1,509 |
| Total revenue |
| $ | 18,421 |
| $ | 20,006 |
| $ | 19,870 | |
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSE |
|
|
|
|
|
|
|
|
| ||
| United States | Live theater cost |
| $ | (1,048) |
| $ | (1,024) |
| $ | (765) |
|
| Occupancy expense |
|
| (734) |
|
| (694) |
|
| (789) |
|
| Utilities |
|
| (93) |
|
| (116) |
|
| (184) |
|
| Cleaning and maintenance |
|
| (198) |
|
| (183) |
|
| (170) |
|
| Other operating expenses |
|
| (1,073) |
|
| (1,096) |
|
| (1,237) |
|
|
|
| $ | (3,146) |
| $ | (3,113) |
| $ | (3,145) |
|
|
|
|
|
|
|
|
|
|
|
|
| Australia | Occupancy expense |
| $ | (1,829) |
| $ | (1,988) |
| $ | (1,956) |
|
| Labor cost |
|
| (174) |
|
| (247) |
|
| (218) |
|
| Utilities |
|
| (131) |
|
| (72) |
|
| (73) |
|
| Cleaning and maintenance |
|
| (853) |
|
| (983) |
|
| (927) |
|
| Other operating expenses |
|
| (736) |
|
| (929) |
|
| (892) |
|
|
|
| $ | (3,723) |
| $ | (4,219) |
| $ | (4,066) |
|
|
|
|
|
|
|
|
|
|
|
|
| New Zealand | Occupancy expense |
| $ | (167) |
| $ | (474) |
| $ | (418) |
|
| Labor cost |
|
| (2) |
|
| (22) |
|
| (99) |
|
| Utilities |
|
| (5) |
|
| (62) |
|
| (53) |
|
| Cleaning and maintenance |
|
| (4) |
|
| (44) |
|
| (33) |
|
| Other operating expenses |
|
| (416) |
|
| (1,309) |
|
| (949) |
|
|
|
|
| (594) |
|
| (1,911) |
|
| (1,552) |
|
|
|
|
|
|
|
|
|
|
|
|
| Total operating expense |
| $ | (7,463) |
| $ | (9,243) |
| $ | (8,763) | |
|
|
|
|
|
|
|
|
|
|
|
|
DEPRECIATION, AMORTIZATION, GENERAL AND ADMINISTRATIVE EXPENSE |
|
|
|
|
|
|
|
|
| ||
| United States | Depreciation and amortization |
| $ | (2,500) |
| $ | (2,628) |
| $ | (3,104) |
|
| General and administrative expense |
|
| (649) |
|
| (866) |
|
| (700) |
|
|
|
|
| (3,149) |
|
| (3,494) |
|
| (3,804) |
|
|
|
|
|
|
|
|
|
|
|
|
| Australia | Depreciation and amortization |
| $ | (1,580) |
| $ | (2,091) |
| $ | (2,514) |
|
| General and administrative expense |
|
| (76) |
|
| (58) |
|
| (240) |
|
|
|
|
| (1,656) |
|
| (2,149) |
|
| (2,754) |
|
|
|
|
|
|
|
|
|
|
|
|
| New Zealand | Depreciation and amortization |
|
| (235) |
|
| (441) |
|
| (758) |
|
| General and administrative expense |
|
| (1) |
|
| — |
|
| — |
|
|
|
|
| (236) |
|
| (441) |
|
| (758) |
|
|
|
|
|
|
|
|
|
|
|
|
| Total depreciation, amortization, general and administrative expense |
| $ | (5,041) |
| $ | (6,084) |
| $ | (7,316) | |
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME (LOSS) - REAL ESTATE |
|
|
|
|
|
|
|
|
| ||
| United States |
| $ | 586 |
| $ | (362) |
| $ | (751) | |
| Australia |
|
| 5,280 |
|
| 5,973 |
|
| 5,343 | |
| New Zealand |
|
| 51 |
|
| (932) |
|
| (801) | |
| Total real estate operating income (loss) |
| $ | 5,917 |
| $ | 4,679 |
| $ | 3,791 | |
A reconciliation of segment operating income to income before income taxes is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
| 2025 |
| 2024 |
| 2023 | |||
Segment operating income (loss) |
| $ | 9,560 |
| $ | 1,882 |
| $ | 3,915 |
Unallocated corporate expense: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense |
|
| (427) |
|
| (387) |
|
| (711) |
General and administrative expense |
|
| (14,440) |
|
| (15,528) |
|
| (15,235) |
Interest expense, net |
|
| (17,930) |
|
| (21,154) |
|
| (19,418) |
Equity earnings (loss) of unconsolidated joint ventures |
|
| 560 |
|
| (387) |
|
| 456 |
Gain (loss) on sale of assets |
|
| 8,365 |
|
| (1,371) |
|
| 562 |
Gain (loss) on acquisition of noncontrolling interest |
|
| 2,691 |
|
| — |
|
| — |
Other (expense) income |
|
| (2,178) |
|
| 1,528 |
|
| (164) |
Income (loss) before income taxes |
| $ | (13,799) |
| $ | (35,417) |
| $ | (30,595) |
Assuming cash and cash equivalents are accounted for as corporate assets, total assets by business segment and by country are presented as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| December 31, | ||||
(Dollars in thousands) |
| 2025 |
| 2024 | ||
By segment: |
|
|
|
|
|
|
Cinema |
| $ | 184,162 |
| $ | 191,008 |
Real estate |
|
| 176,396 |
|
| 207,044 |
Corporate (1) |
|
| 74,371 |
|
| 72,959 |
Total assets |
| $ | 434,929 |
| $ | 471,011 |
By country: |
|
|
|
|
|
|
United States |
| $ | 245,169 |
| $ | 264,284 |
Australia |
|
| 166,026 |
|
| 167,667 |
New Zealand |
|
| 23,734 |
|
| 39,060 |
Total assets |
| $ | 434,929 |
| $ | 471,011 |
(1)Corporate Assets includes cash and cash equivalents of $10.5 million and $12.3 million as of December 31, 2025 and 2024, respectively.
The following table sets forth our operating properties, net, by country:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| December 31, | ||||
(Dollars in thousands) |
| 2025 |
| 2024 | ||
United States |
| $ | 140,179 |
| $ | 146,531 |
Australia |
|
| 58,934 |
|
| 59,081 |
New Zealand |
|
| 8,861 |
|
| 9,082 |
Total operating properties, net |
| $ | 207,974 |
| $ | 214,694 |
The table below summarizes capital expenditures for the three years ended December 31, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
| 2025 |
| 2024 |
| 2023 | |||
Segment capital expenditures |
| $ | 1,498 |
| $ | 2,028 |
| $ | 4,711 |
Corporate capital expenditures |
|
|
|
|
|
|
|
|
|
Total capital expenditures |
| $ | 1,498 |
| $ | 2,028 |
| $ | 4,711 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2021 | Mar 16, 2022 | |
| 2020 | Mar 31, 2021 | |
| 2019 | Mar 16, 2020 | |
| 2018 | Mar 18, 2019 | |
| 2017 | Mar 16, 2018 | |
| 2016 | Mar 13, 2017 | |
| 2015 | Apr 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.