The number of visitors increased in the first half of 2016, mainly due to the addition of acquired and new cinemas in the Netherlands, France and Luxembourg. Leaving aside the impact of the expansion, the number of visitors was virtually stable.
The continued implementation of the strategic pillars and product innovation resulted in a further increase in sales per visitor and improved operational efficiency.
The results of the first half of the year were also impacted by the recent acquisition of Utopolis (November 2015) and the cinema in Rouen (January 2016), whose integration is currently in the start- up phase, and the new cinema in Dordrecht, which opened in February.
Key figures H1 2016:
The number of visitors increased by 14.6% to 11.2 million, mainly due to the expansion and, in Spain, to the recovering economy.
revenue from the sale of tickets, beverages and snacks increased by 15.9%, outpacing the rise in visitor numbers. Total revenue increased by 13.9% to € 148.3 million.
Current EBITDA (REBITDA) increased by 10.4% to € 39.6 million.
Net current profit decreased by 7.3% to € 14.0 million, due to higher depreciation and a strong increase in the tax rate after the European Commission's decision regarding the Belgian excess profit rulings (EPR).
Free cash flow rose by 4.2% to € 9.8 million.
The net financial debt increased by € 51.6 million to € 213.6 million, mainly due to the expansion.
A strong first quarter, including 'Star Wars Episode VII: The Force Awakens', 'Deadpool' and 'The Revenant', was followed by a rather weak second quarter, characterized by a less successful local and international film program, especially compared to the big hits 'The Fast and Furious 7' and 'Jurassic World' in the same period the previous year. The European football championship was another factor in the weaker results of the second quarter. France with 'Les Tuche 2', Belgium with 'Safety First' and Spain with 'Palmeras en la Nieve' reaped the rewards of a successful local program in the first quarter. In Spain recovering consumer confidence also contributed to the increased number of visitors over the first half of 2016.
Visitor-related revenue (from the sale of tickets, beverages and snacks) increased by 15.9% compared to the same period the previous year. Box Office (BO) revenue per visitor increased due to more 3D films and price adjustments at renovated complexes, among other things. Revenue from the sale of beverages and snacks (In-theatre sales, ITS) also increased, except for the Netherlands, where the acquisition of Utopolis impacted the average ITS turnover.
B2B and real estate income increased, but at a slower pace than average turnover growth. Only Brightfish saw its income decrease, as a consequence of fewer events with partners and the continued fall in income from national screen advertising.
The film distribution business (Kinepolis Film Distribution, KFD) experienced a very strong first half of the year, due to the successful local films 'Safety First' and 'Achter de Wolken', and fewer film releases in the first half of 2015.
Eddy Duquenne, CEO Kinepolis Group, about the first half of 2016: "We have performed solidly in the first six months, also due to successful product innovation and further improved operational efficiency. Over the coming period, management will focus on a successful integration of the acquired Utopolis cinemas and the divestment of the Belgian Utopolis complexes. The launch of the new cinemas is on track."
Semestrial financial report attached.