Kinepolis notes a further upturn in cinema attendance and

0

Kinepolis sees cinema attendance is picking up again and regain its financial strength

Regulatory release

August 18, 2022, 7:00 a.m.

Kinepolis recorded a strong recovery in operating profit and free cash flow in the first half of 2022. The Group saw a gradual recovery in cinema attendance in all countries, with initially lagging countries now catching up . The summer holidays started promisingly, but were then undermined by the heat wave.

Kinepolis welcomed five times more visitors in the first half of 2022 than in the first half of 2021, i.e. 77.2% visitors compared to the same period in 2019. While the Covid measures were still in force in most countries in first quarter, with the Dutch cinemas and some Canadian cinemas remaining closed until the end of January, all cinemas were exempt from measures in the second quarter. In the month of June, ‘Top Gun: Maverick’, ‘Jurassic World Dominion’ and ‘Elvis’ ensured a recovery in the number of visitors to 107.0% compared to June 2019.

Average sales per visitor remained high, driven by strong demand for premium experiences and products, leading to a faster recovery in revenue from visitors versus visitors. The other businesses also recorded a smooth recovery, in particular business-to-business activities, thanks to a significant increase in corporate events.

The implementation of the Entrepreneurship plan strongly contributed to the recovery of operating profit and the development of the product range. The regained financial solidity will enable Kinepolis to focus more on external expansion and the premiumisation of its offer.

Important achievements in H1 2022

  • Appointment of Mr. Jeroen Mouton as new CFO. It will start on November 15, 2022.
  • Agreement to take over the operation of two Spanish cinemas (Marbella and Barcelona) from November 2022.
  • Investments in a premium cinema experience, including the introduction of “Premiere Seats” in ten Landmark theaters and 200 laser upgrades in 2022, as well as preparing for the rollout of premium concepts in the United States.
  • Agreement for the deployment of the Eikona Cinema Manager TMS system in Europe.

H1 2022 key figures1 2

  • Kinepolis welcomed 13.7 million visitors in the first half, corresponding to 77.2% of visitors in the same period in 2019, thus generating 93.5%3 turnover compared to H1 2019. In the second quarter, Kinepolis recorded an attendance level of 86.9% compared to Q2 2019, resulting in a turnover of 103.9%3 compared to Q2 2019.
  • Sales per visitor (ticket sales, drinks and snacks) remained high and above those of 2021.
  • EBITDA in the first half amounted to 68.2 million euros, with a EBITDA (EBITDA adjusted for rents) of 50.4 million euros.
  • Total profit amounts to 9.1 million euros.
  • Free movement of capital recovered at 25.7 million euros.
  • The net financial debt (NFD), excluding rental debt, went from €474.5 million as of December 31, 2021 to €450.0 million as of June 30, 2022.

Eddy Duquenne, CEO of Kinepolis Group, on the first half:

“I am proud of the company’s financial turnaround and the strength we are finding to focus on our continued internal and external expansion. Blockbusters are playing an important role in the recovery of cinema attendance, and we expect mid-size and local films to reach their full potential in the coming months as well. Our strategy of focusing on the premiumization of the customer experience has borne fruit and, combined with the implementation of our Entrepreneurship plan, has strongly contributed to the recovery of our operating profit.

2022 half-year financial report attached.


1 Figures from January 1 to June 30, 2022.
2 Press release based on unaudited figures.
3 Corrected for unique items related to Covid-19.

Share.

Comments are closed.