Consistent implementation of business and expansion strategy results in 7.3% higher revenue and 10.6% higher EBITDA for Kinepolis in the first half-year
22 August 2019, 7 a.m.
Kinepolis achieved a 7.3% higher turnover1 in the first half of 2019, with 3.7% more visitors. The EBITDA2, before the impact of IFRS 163, increased in the same period by 10.6%, to € 56.4 million. Including the impact of IFRS 16, EBITDA amounted to € 69.2 million.
The integration of Landmark Cinemas Canada and the recently acquired Spanish El Punt cinemas is progressing successfully. The Kinepolis concepts that have been introduced to the Canadian market in recent months are being well received, which gives confidence in the potential of a further roll-out.
The further implementation and development of the business strategy, and product innovation in particular, led to a further increase in sales and EBITDA per visitor at Group level. The high visitor figures in the second quarter, which were due to a strong film offer and the absence of a football World Cup, more than compensated for a more difficult first quarter.
- Acquisition and integration of the El Punt cinemas in Barcelona and Alzira (Spain).
- Further investment in the ultimate movie experience through an accelerated roll-out of laser projection, the opening of various Laser ULTRA and 4DX theatres and the roll-out of RealD 3D.
- Introduction of Laser ULTRA in Canada (Shawnessy) and opening of the second Kinepolis self-service shop in Whitby, following the successful test in Kanata.
- Agreement regarding the opening, in the second half of the year, of six ScreenX theatres, for a unique, 270 degree panoramic viewing experience.
Key figures for the first half of 201945:
- Total revenue increased by 7.3%, to € 238.1 million, thanks to the expansion of the Group and a strong second quarter, increased sales per visitor and increased revenue in almost all business lines.
- EBITDA, excluding IFRS 16 adjustment, increased by 10.6%, to € 56.4 million. Including IFRS 16 adjustment, EBITDA amounted to € 69.2 million.
- Adjusted profit increased by 0.9%, to € 18.9 million.
- Free cash flow6 increased by € 9.5 million, to € 25.0 million.
- The net financial debt, excluding lease liabilities as a result of the IFRS 16 implementation, increased by 12.3%,7 to € 310.8 million, mainly due to the acquisition of El Punt, the dividend payment and various investments, including those on the construction of new complexes.
Eddy Duquenne, CEO Kinepolis Group, on the first half-year:
“The further implementation of our business strategy, which is driven by a continuous culture of improvement and innovation, made it possible to perfect the customer experience even more in the first half of the year, resulting in further growth of revenue and profitability per visitor.
This approach helps us in the execution of our expansion strategy, as it allows us to deliver on our investments. Various Kinepolis concepts have been introduced onto the Canadian market and are being well received. This proves that we can leverage our know-how in new markets as well.
Compared to the second quarter of last year, visitor numbers were significantly higher, thanks to, among other things, the absence of the football World Cup and a strong line-up, with ‘Avengers: Endgame’ as the absolute blockbuster. Belgium suffered from a difficult comparison with the first semester of 2018, due to the exceptionally strong local content in the spring of last year. In the meantime, thanks to a good summer holiday and the success of ‘The Lion King’, Belgium has closed the gap completely.
The successful placement of bonds, for a total amount of € 225 million, not only allows us to refinance our investments in the long term, but also provides us with the necessary resources for the further financing of our expansion strategy.”
Full semestrial financial report attached.
1 At constant exchange rates, turnover increased by 6.6%.
2 Under IFRS, EBITDA is not a recognised figure. Kinepolis Group defined the concept by adding to the operating result the depreciations, write-downs and provisions booked and deducting any reversals or practices from the same headings.
3 New IFRS standard with regard to the processing of lease contracts.
4 All comparisons are with respect to the first half of 2018.
5 Press release based on unaudited figures.
6 The Kinepolis Group defines free cash flow as cash flow from operating activities less maintenance investments in intangible and tangible fixed assets and investment properties, and interest paid.
7 Compared with 31 December 2018.