Dave & Buster’s second quarter revenues declined 85% due to COVID-19 restrictions.
The company states that its net loss for the second quarter was £45.69 million.
Dave & Buster’s reopened 84 of its stores in 27 states to the public in the second quarter.
Dave & Buster’s Entertainment Inc. (NASDAQ: PLAY) released its quarterly financial results on the Thursday following the stock market bell, which exceeded analysts’ estimates for second quarter revenues. However, the loss per share for Q2 was lower than expected.
The company’s shares traded down approximately 1.5% in extended trading on Thursday. Including the price action, Dave & Buster’s now trades at £13.79 per share, down from a much lower price per share of £3.80 per share in March when COVID-19 urged the company to temporarily close its operations.
The share started 2020 at a much higher price of £31.72 per share. Here you can find out what you need to know about selecting winning shares.
Dave & Buster’s financial results for the 2nd quarter compared to analysts’ estimates
Dave & Buster’s said its net loss for the second quarter was £45.69 million, or 97 pence per share. In the same quarter last year, the company reported a net profit of £25.26 million or 70.17 pence per share.
In terms of revenue, the restaurant and entertainment business saw a massive 85 per cent decline in the final quarter to £39.60 million, down from £268.66 million in the same quarter last year.
According to FactSet, experts had predicted that the company would print £61.20 million of revenue in the second financial quarter. Their estimate of loss per share was capped at a higher value of £1.09. Dave & Buster’s had also closed the first quarter of its financial year with a loss, according to the report published in June.
The Dallas-based company also said on Friday that it reopened 84 of its stores in 27 states in the second quarter. However, it acknowledged the uncertainty of the coronavirus and did not provide a financial guidance for the full year. Dave & Buster’s also attributed its weaker performance in the second quarter to the disruption associated with the health crisis.
Comments from CEO Brian Jenkins on Thursday’s report
COVID-19 has so far infected more than 6.5 million people in the United States and caused over 196 thousand deaths. But CEO Brian Jenkins commented on the report on Friday, saying
“We have made steady progress in reopening our businesses while rapidly implementing numerous initiatives that will accelerate our business recovery and position us for long-term success.
At the time of writing this report, the US restaurant and entertainment business is estimated at £666.66 million and offers value for money of £52.30.