Record high revenue in the first half of 2023
17 August 2023, 7 a.m.
In the first half year of 2023, Kinepolis generated 25.1% more revenue than in the same period in 2022 and 19.8% more than in the first half of record year 2019. EBITDA(L) and revenue per visitor also reached their highest level ever.
This was achieved despite the number of visitors still being lower than before the pandemic (-5.3% compared with H1 2019), spread over a now expanded number of cinemas. This larger base underlines the growth potential when visitor numbers continue to increase upon full recovery of the range of international films on offer.
The high revenue per visitor reflects the increased demand for more experience and, as such, ‘premium’ film experiences. Kinepolis therefore continues to invest in a higher capacity of premium formats and new products in its cinemas in order to offer a diverse range of products adapted to various target groups.
The Entrepreneurship and Star plans that Kinepolis has developed over the past years, in anticipation of a lower number of visitors and a higher demand for experience, are bearing double fruit as market demand increases.
Important achievements in H1 2023
- Acquisition of cinema in Belfort (FR)
- Agreement for six new IMAX screens (opening late 2023) and two upgrades of existing IMAX screens
- Further roll-out of Premiere Seats, VIP Seats and Laser ULTRA for a premium film experience in North America
Key figures H1 2023
- Total revenue amounted to € 285.3 million, an increase of 25.1% compared to the same period in 2022 or 19.8% compared to the same period in 2019.
- Kinepolis achieved this record turnover with 16.8 million visitors, an increase of 22.8% compared to the first half of 2022 or 94.7% of the visitors welcomed in the first half of 2019.
- Sales per visitor (tickets, drinks and snacks) increased further compared to 2022.
- EBITDA amounted to € 82.0 million in the first semester versus € 68.2 million in 2022 and € 69.2 million in 2019, while EBITDAL (EBITDA adjusted for leases) amounted to € 64.3 million, compared with € 50.4 million in 2022 and € 55.3 million in 2019. EBITDAL per visitor rose from € 3.68 in the first half of 2022 to € 3.83 in the first half of 2023.
- Total profit amounted to € 20.8 million, more than doubling the profit registered in the first half of 2022.
- Free cash flow amounted to € 22.3 million.
- Net financial debt (excluding lease liabilities) remained roughly constant at € 422.6 million, despite important investments in maintenance and premium film experiences, working capital movements and an acquisition.
Eddy Duquenne, CEO of Kinepolis Group, about the first half of the year:
“We have had an outstanding first half, during which we registered record high figures with visitor numbers that are not yet at the level they were before the pandemic. The first six months confirmed what we were already able to observe in 2022: visitor numbers are recovering in line with the increase of the number of international films on offer. Blockbusters like ‘Avatar 2’ and ‘The Super Mario Bros. Movie’ led the way in the first half of the year and, in recent weeks, we have witnessed the phenomenal success of ‘Barbie’ and ‘Oppenheimer’ (which are not yet included in these figures).
The high demand for experience and the fact that we have continued to invest in our enhanced experience offering since the pandemic, combined with the further increase in visitor numbers, provide good growth potential for the future. Comparing on a like-for-like basis - i.e. without the cinemas taken over since then and the newly opened ones - we are still only at 74.8% of the visitors we received in 2019 at Group level. We anticipate this figure will continue to develop positively in the coming months and years.
We are now reaping the rewards of the ambitious Entrepreneurship and Star plans that we made during and after the pandemic. And those rewards are still growing as our regained financial strength allows us to continue to invest in a premium film experience and in the further expansion of the Group.”
Half-yearly financial report 2023 attached.