Kinepolis sees turnover and profitability recovering strongly in 2022
16 February 2023, 7 a.m.
2022 heralded the first year of recovery after a pandemic that has affected cinemas for more than two years. In the first quarter of 2022, Kinepolis was still confronted with restrictive measures and even closures in some countries.
Nevertheless, Kinepolis received 70.7% more visitors in 2022 than in 2021 (a year that was significantly affected by Covid), generating 87.7% more turnover. Visitor numbers recovered to 72.7% of the pre-Covid level (2019), achieving 90.6% of the 2019 turnover. The strategy of continuing to focus on customer experience remains very rewarding. Revenue per visitor has never been higher.
Despite a number of spectacular blockbusters such as 'Top Gun: Maverick’ and ‘Avatar: The Way of Water’, the number of film releases from Hollywood remained rather limited in 2022. The pandemic situation in China prompted Hollywood to postpone films to 2023 and 2024 as much as possible.
The stabilisation of that situation, a global restart of (cinema) film production in 2022 and the renewed focus of studios on the cinema model promises a further increase in international film offerings and visitor numbers in the coming years.
Against this background, Kinepolis nevertheless made significant gains in profitability and financial strength in 2022, thanks in part to its commitment to further premiumisation of its product range and the successful implementation of its Entrepreneurship plan. Kinepolis also took the first steps in the further implementation of its expansion strategy with a number of interesting acquisitions.
As a sign of confidence in the future, a dividend payment will be proposed to the General Meeting, albeit based on a lower pay-out ratio than used in the past, pending a further build-up of the company's financial solidity.
Important achievements in 2022
- Full implementation of the 'Entrepreneurship 2022' plan, as an important lever for EBITDA development in 2022
- Opening of Kinepolis Metz Amphithéâtre (FR)
- Acquisition of cinemas in Barcelona, Marbella (ES) and Amnéville (FR)
- Roll-out of Kinepolis concepts in Canada and the US (Premiere Seats, Laser ULTRA, VIP Seats)
- Transition to laser projection: 220 installations in 2022
Key figures 2022
- Total revenue amounted to € 499.9 million, an increase of 87.7% compared with 2021 or 90.6% of the turnover achieved by Kinepolis in 2019 (a record year).
- Revenue per visitor remained high and increased compared with 2021.
- Kinepolis received 29.3 million visitors in 2022, an increase of 70.7% compared with the previous year. These visitor numbers represent 72.7% of the visitors received in 2019.
- The operating result adjusted for leases (EBITDAL) amounted to € 114.0 million (compared with € 38.5 million at the end of 2021). EBITDAL per visitor rose to its highest level ever, from € 2.24 to € 3.89.
- Net profit amounted to € 27.5 million.
- Free cash flow was € 70.1 million for the full year versus € 48.9 million in 2021.
- Net financial debt, excluding lease liabilities, decreased from € 474.5 million at the end of 2021 to € 423.5 million at the end of 2022.
- The Board of Directors will propose a gross dividend of € 0.26 per share to the General Meeting. This corresponds to a pay-out ratio of 25% pending further recovery of the Group's solvency and debt reduction.
Eddy Duquenne, CEO of Kinepolis Group, about the results for 2022:
“I am particularly proud of the turnover and the result we are achieving with these visitor numbers. We are enthusiastic about what Hollywood is undertaking regarding its theatrical release calendar for the years to come, especially considering the success of local films and Hollywood blockbusters over the past year.
The steps we have taken by focusing on experience, in combination with our Entrepreneurship plan, have ensured that Kinepolis has become one of the strongest players in the industry from a financial point of view. This not only provides us with the means to roll out a large number of new ideas and concepts, for an even greater customer experience, but also to continue our expansion strategy.”
Full report annual results 2022 attached.