Eden Leisure Group (ELG) reported €5.7 million in pre-tax profit during 2023, 140.4 per cent more than the figure of the previous year (2022: €2.4 million).

The results were shared in the group’s financial statements for the financial year ended 31st December 2023, released on Tuesday.

ELG is a leading leisure and hospitality operator in Malta, with establishments including Eden Cinemas, Eden SuperBowl, Cynergi Health & Fitness Club, and 89.7 Bay, among others. It also owns five-star hotel InterContinental Malta, as well as Holiday Inn Express, both operated by InterContinental Hotels Group (IHG).

Throughout 2023, ELG continued its rebound from the COVID-19 pandemic, with revenue increasing substantially by 36.6 per cent to €45.4 million (2022: €33.2 million).

From the entertainment and related operations segment, €8.1 million was directly generated through those services, while €3.7 million came in from advertising and sponsorship agreements. However, the hospitality segment remained the main contributor to total revenue, bringing in €31.9 million from accommodation and related services (2022: €22.4 million), while €1.5 million in revenue was generated through other services within the segment. ELG remarked that conference business assisted the already strong leisure market, leading to stronger occupancy due to a number of long stay corporate activities, ranging from film production and esports activities, among others.

On the other hand, direct costs also surged upwards by 45.4 per cent to €20 million in 2023 from 2022’s €13.7 million. Other operating expenses amounted to €8.1 million. Out of these figures, €13.9 million was directed towards wages and salaries (2022: €10 million).

Other operating income for the year, which includes income from rent and interest, remained relatively stable at €1.1 million.

The group’s total assets as at the end of 2023 amounted to €209.5 million, expanding from the €205.6 million recorded at 31st December 2022.

Over recent years, ELG has undergone a number of changes across all fronts, as it aims to continue its recovery from the pandemic-hindered years.

In 2023, Eden Cinemas stabilised itself in operating from one building, reducing the number of screens from 13 to nine. ELG stated that cinema attendance continued to improve in 2023 and while it is still lower than 2019 levels, it is seeing a significantly better occupancy per theatre with fewer screens, suggesting greater operational efficiency.

The Eden SuperBowl was forced to operate with a reduced size during 2022 due to adjacent works, yet it still outperformed all historical results including 2019. However, as part of the works for The Eden, a new entertainment centre scheduled to open this summer, ELG management had to close the bowling centre in January 2024. ELG stated that the old SuperBowl space at street level will cater for commercial high street rental space including two restaurants as well as back of house storage for the group. As at the publishing of the financial statements, the development of civil works for The Eden has been completed, with the building and site expected to resemble a finished product that will have a positive impact on ELG’s surrounding businesses in the coming months.

Additionally, in 2023, ELG invested in the development of a new radio station on the FM frequency of 100.2, and subsequently launched Bay Easy in August.

Looking ahead, ELG stated that the outlook for financial year 2024 “continues to express strong markers” for both its existing businesses and the ones set to launch this year. The group is progressing with a number of signed commercial leases for various restaurant concepts and an ATM, with a number of other negotiations also ongoing for remaining commercial spaces and offices.

“The hospitality sector is expected to improve on its 2023 figures going forward as tourist numbers appear to continue to grow despite a sluggish first quester in the five-star market. Our up-scale new Voco hotel is expected to perform well in its first year,” ELG affirmed.