Highlights 2014 compared to 2013
* In 2014 the first steps in the execution of the expansion strategy were taken.
* Visitor numbers increased by 8.0% to 19.7 million, due to expansion.
* Revenue increased by 6.8%.
* The core activities box office and in-theatre sales performed strongly.
* Operational efficiency of the cinema activities improved further.
* Corporate events and screen advertising experienced a decline, mainly due to the World Cup football.
* Film distribution generated a negative result, due to a number of disappointing local productions.
* Current EBITDA was stable at EUR 74.3 million (-0.5%).
* Current profit was EUR 35.6 million (-4.8%), earnings per share EUR 1.34 (-2.9%).
* Free cash flow increased by 11.7%, from EUR 46.3 million to EUR 51.8 million.
* Net financial debt increased by EUR 30.5 million to EUR 118.6 million.
* The proposed dividend per share amounts to EUR 0.69 based on a 50% pay-out ratio and the number of dividend eligible shares on 23 February 2015, an increase of 8.2%.
* The distribution of a super dividend of EUR 0.20 per share is proposed.
The year 2014 was characterised by expansion. Kinepolis entered the Dutch market, expanded in Spain and announced various new-build projects. In the course of the year significant investments were also made to strengthen the organisation in support of the Group's expansion.
The number of visitors increased by 8.0%, thanks to the acquired cinemas in the Netherlands and Spain and a good local film offer in France and Spain. However, the warm weather in June and in the autumn in Belgium and France and the World Cup football, as anticipated, had a negative impact on visitor numbers. The higher visitor numbers led to an increase in total revenue by 6.8%. The core businesses box office and in-theatre sales performed strongly. Spain's larger share and sectoral price campaigns in France and Spain had a negative impact on the revenue per visitor. Total revenue of Brightfish increased, due to higher income from events, whereas income from screen advertising decreased. Revenue from film distribution and real estate increased. Business-to-business revenue decreased due to the lower revenue from screen advertising and fewer corporate events as a consequence of the World Cup football.
Current EBITDA was EUR 74.3 million, compared to EUR 74.6 million in 2013. Despite the increase in film distribution revenue, this activity, like screen advertising, had a negative impact on current EBITDA. Operational efficiency improved in all other businesses, resulting in a higher current gross profit margin. Due to the lower contribution of screen advertising and film distribution and increased overheads, resulting from the acquisitions in the Netherlands and Spain and organisational adjustments in response to growth, total current EBITDA remained stable (-0.5%).
Current profit was 4.8% lower due to higher depreciations and higher income tax expenses, partly offset by lower interest charges. Earnings per share were EUR 1.34. This is 2.9% down on the previous year.