In the first half year of 2023, Kinepolis generated 25.1 percent more revenue than in the same period in 2022 and 19.8 percent more than in the first half of record year 2019. Revenue per visitor also reached their highest level ever.
This was achieved despite the number of visitors still being 5.3 percent lower than before the pandemic, spread over a now expanded number of cinemas. This underlines the growth potential when visitor numbers continue to increase upon full recovery of the range of international films on offer.
The high revenue per visitor reflects the increased demand for more experience and, as such, ‘premium’ film experiences. Kinepolis therefore continues to invest in a higher capacity of premium formats and new products in its cinemas in order to offer a diverse range of products adapted to various target groups.
The Entrepreneurship and Star plans that Kinepolis has developed over the past years, in anticipation of a lower number of visitors and a higher demand for experience, are bearing double fruit as market demand increases.
In addition, this year Kinepolis acquired a cinema in Belfort, France; added six new Imax screens and upgraded two existing Imax screens in the chain; and continued the rollout of premium seating in its North American theatres.
Total revenue amounted to € 285.3 million, an increase of 25.1 percent compared to the same period in 2022 or 19.8 percent compared to the same period in 2019.
Kinepolis achieved this record turnover with 16.8 million visitors, an increase of 22.8 percent compared to the first half of 2022 or 94.7 percent of the visitors welcomed in the first half of 2019.
Total profit amounted to € 20.8 million, more than doubling the profit registered in the first half of 2022. Free cash flow amounted to € 22.3 million.
Net financial debt (excluding lease liabilities) remained roughly constant at € 422.6 million, despite important investments in maintenance and premium film experiences, working capital movements and an acquisition.
Eddy Duquenne, CEO of Kinepolis Group, said, “We have had an outstanding first half, during which we registered record high figures with visitor numbers that are not yet at the level they were before the pandemic. The first six months confirmed what we were already able to observe in 2022: visitor numbers are recovering in line with the increase of the number of international films on offer. Blockbusters like Avatar 2 and The Super Mario Bros. Movie led the way in the first half of the year and, in recent weeks, we have witnessed the phenomenal success of Barbie and Oppenheimer (which are not yet included in these figures).
“The high demand for experience and the fact that we have continued to invest in our enhanced experience offering since the pandemic, combined with the further increase in visitor numbers, provide good growth potential for the future. Comparing on a like-for-like basis – i.e. without the cinemas taken over since then and the newly opened ones – we are still only at 74.8 percent of the visitors we received in 2019 at Group level. We anticipate this figure will continue to develop positively in the coming months and years.
“We are now reaping the rewards of the ambitious Entrepreneurship and Star plans that we made during and after the pandemic. And those rewards are still growing as our regained financial strength allows us to continue to invest in a premium film experience and in the further expansion of the Group.”
Kinepolis Group NV www.kinepolis.com/corporate