A strong 2019 for Kinepolis, thanks to the consistent implementation of the business strategy in combination with a successful range of films
20 February 2020, 7 a.m.
The continued implementation of the Kinepolis business strategy, both in new and existing markets, combined with favourable market conditions in Europe, led to excellent results for the Group in 2019. Almost all cinemas received significantly more visitors, particularly in the second half of the year, thanks to very successful international blockbusters. The expansion in the North American market is going according to plan, with a successful roll-out of the business strategy in the Canadian Landmark cinemas, and a further expansion of the activities through the acquisition of MJR Digital Cinemas in the US.
This resulted in a 15.9%1 increase in revenue for 2019, with 13.3% more visitors and an EBITDA increase of 23.8%, to €145.0 million, excluding the impact of IFRS 16. Including the impact of IFRS 16, EBITDA amounted to €172.3 million. Net profit increased by 14.7%, to €54.4 million. Both the revenue and EBITDA per visitor2 increased further, thanks to the success of premium cinema experiences and the continued commitment to operational efficiency.
Major achievements in 2019:
- Further investments in the ultimate customer experience through, among others, the roll-out of RealD 3D, laser projection, including Laser ULTRA, the opening of various 4DX and ScreenX theatres, and a new IMAX theatre in Antwerp (BE).
- Successful introduction of Laser ULTRA and the megacandy shop concept in a number of Landmark cinemas.
- Opening of new cinema complexes in France (Servon) and Canada (Regina and Calgary Market Mall).
- Acquisition and integration of the El Punt cinemas in Barcelona and Alzira (ES).
- Entry into the US, thanks to the acquisition of MJR Digital Cinemas in Michigan.
- Acquisition of the Arcaplex cinema in Spijkenisse (NL).
- Kinepolis elected ‘Entrepreneur of the Year 2019’ in its home market Belgium.
Key figures for 2019 as compared to 2018:
- Total revenue increased by 15.9% to €551.5 million, with visitor-related revenue increasing by 17.8%.
- The number of visitors increased by 13.3% to 40.3 million, thanks to the expansion of the Group and a successful range of films.
- The adjusted EBITDA, excluding the IFRS 16 impact, increased by 23.4%, to €146.8 million.
- Net profit increased by 14.7% to €54.4 million. Earnings per share amounted to €2.02.
- Free cash flow increased by €25.4 million, to €90.2 million.
- Net financial debt3 increased from €276.8 to € 417.0 million. The debt ratio remains conservative, with an NFD/adjusted EBITDA ratio, both excluding the IFRS16 impact, of 2.84.
- The proposed dividend per share is € 1.0, an increase of 8.7%.
Eddy Duquenne, CEO of Kinepolis Group, about the results for 2019:
“The continued execution of our business strategy, aimed at finding new revenue sources and reducing our break-even point every year by introducing small improvement steps, has been providing solid results for 13 years in a row. On top of that, in 2019, this was supported by a strong content line-up.
We have again taken important steps in the further execution of our expansion in the past year, including the acquisition of the American cinema group MJR. As a result, we now already realise 30% of our visitor numbers in the North American market. In this respect, it is encouraging to see that the introduction of our business strategy and concepts in Canada is going well.”
Full report annual results 2019 attached.
(*) For the Alternative Performance Measures (APMs), we refer to the glossary in attachment.
 15.0% at the same exchange rates.
2 Excluding the impact of IFRS 16.
3 Excluding lease liabilities.