What caused RDIB's Q2 earnings to miss forecasts?

RDIB's Q2 earnings missed forecasts due to several key factors: 1. **Interest Expenses**: The company's Q2 financials were impacted by significant interest expenses, which totaled $5,388,000. These expenses are a result of the company's reliance on borrowed funds, which are a common feature in the corporate financing landscape. Interest expenses, though tax-deductible, can significantly compress net profit margins, especially in periods of high interest rates or when not well-managed. 2. **Cinema Operations and Real Estate Challenges**: The cinema segment faced challenges due to Hollywood strikes and movie release delays, which affected revenue. Additionally, the real estate division had to deal with increased depreciation and amortization expenses, partly offsetting the income from rental properties. In summary, the combination of high interest expenses and challenges in both cinema operations and real estate contributed to RDIB's Q2 earnings missing forecasts.