Regulatory release
Strategic Kinepolis objectives visible in 2010 results
Kinepolis Group resolutely perpetuates its strategic objectives to be the best marketeer, the best cinema operator and the best cinema real estate manager. This is reflected in the 2010 results as follows:
*The customer experience-focused approach, the online media strategy and the breakthrough of 3D, lead to an increase in the box office (revenue from ticket sales) by 4.1%, whereas the visitors have decreased by 3.0 %.
*In theatre sales (ITS, revenue from the sale of drinks, snacks and retail in the cinema) and business-to-business (B2B) revenue grew too.
*The further differentiation of the costs structure and efficiency-improving measures contribute to the growth of the current EBITDA by 14.5% to EUR 66.5 million and the increase of the current profit by 37.3% to EUR 28.0 million.
*Kinepolis continues to invest in customer experience, digitisation, 3D, remodelling, diversification and new concepts, which supports higher comfort for the film lover, experience and a wider assortment of food and drinks.
*Free cash flow is EUR 38.6 million as targeted, EUR 19.0 million lower than in 2009 (EUR 57.6 million) as a result of activity-related fluctuations of the working capital, the time of incoming and outgoing payments and higher advance payments of tax.
*Net financial debt further decreases by EUR 22.4 million to EUR 67.0 million.
*Real estate revenue continues to rise. The profitability of the land and buildings has further increased. A number of property projects are in an advanced development stage.
*Kinepolis realises a gain of EUR 2.3 million on a first phase of the total development of the Ghent location.