Kinepolis Faces Visitor Drop Amid Promising Film Line-Up
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Kinepolis Faces Visitor Decline in Early 2024
Kinepolis encountered a challenging first half of the year, marked by a noticeable reduction in visitor numbers primarily due to a weak blockbuster selection. The prolonged strike in Hollywood last year has inhibited a robust return to the diverse film offerings that characterized the industry before the pandemic. However, a turnaround seems to be on the horizon, signified by recent successes such as 'Inside Out 2' and 'Deadpool & Wolverine'. Numerous high-profile releases are slated for the autumn, including the much-anticipated sequels like 'Joker: Folie à Deux', 'Gladiator II', and 'Moana 2'.
Financial Performance Overview
The financial outcomes for Kinepolis during the first half of the year reflected challenges, with revenue, EBITDA, EBITDAL, and profit experiencing declines compared to the same timeframe last year. Nonetheless, the revenue per visitor exhibited a slight increase. Kinepolis retains its position as a leader in the industry in terms of financial results and continues to invest in innovation and premium movie experiences. These efforts aim to enhance customer satisfaction and facilitate revenue growth, ultimately contributing to the overall long-term performance of the Group.
Key Achievements in the First Half of 2024
Several significant milestones were achieved by Kinepolis during the first half of 2024:
- Opening of 12 new ScreenX theatres across Europe and North America.
- Launch of 6 new Laser ULTRA screens in Belgium, France, and the US.
- Extended rollout of VIP Seats in the US, Premiere Seats in Canada, and Cosy Seats in Europe.
- Renovation of recently acquired cinemas, Kinepolis Amnéville and Béziers.
- Successful first edition of the Kinepolis Innovation Lab Summit.
- Recognition with the 2024 Milestone Award at CineEurope.
- Appointment of Mr. Pieter-Jan Sonck as the new CFO.
Financial Highlights for H1 2024
The following are key financial figures for Kinepolis during the first half of 2024:
- Total revenue amounted to €242.8 million, reflecting a 14.9% decline relative to the same period in 2023. This decrease was somewhat mitigated by a slight increase in revenue per visitor resulting from ticket, drink, and snack sales.
- EBITDA for the first half was recorded at €54.4 million, compared to €82.0 million in 2023. The adjusted EBITDA (EBITDAL) stood at €37.1 million, down from €64.3 million in 2023. EBITDAL per visitor fell from €3.83 in the first half of 2023 to €2.65 in the first half of 2024.
- Total profit amounted to €0.1 million as against €20.8 million in 2023.
- Free cash flow was reported at €12.5 million.
- Net financial debt (NFD), excluding lease liabilities, increased by €13.6 million, rising from €378.3 million as of the end of 2023 to €392.0 million by the end of June 2024.
CEO's Perspective on H1 2024
Eddy Duquenne, CEO of Kinepolis Group, elaborated on the company's performance during the first half of the year, stating, "The strike in Hollywood has further stalled the recovery of film offerings, significantly impacting the period up to and including May. With the release of significant movies like 'Inside Out 2' and 'Deadpool & Wolverine' since June, we are witnessing record-breaking box office performances, setting a positive tone for an autumn loaded with promising film releases.
Our commitment to enhancing the customer experience continues to yield impressive results, particularly within the North American market. I am also especially proud of our successful organization of the inaugural Kinepolis Innovation Lab Summit, which invigorates creativity and innovation throughout the company."
Frequently Asked Questions
What caused the decline in visitors for Kinepolis in H1 2024?
The decline was primarily attributed to a weak blockbuster film offering, exacerbated by a prolonged Hollywood strike affecting the availability of major film releases.
How is Kinepolis planning to recover from the visitor drop?
Kinepolis anticipates a strong recovery driven by major film releases in the autumn, including titles like 'Joker: Folie à Deux' and 'Gladiator II', alongside continued investment in customer experience.
What were Kinepolis' key financial figures for H1 2024?
Kinepolis reported total revenue of €242.8 million, EBITDA of €54.4 million, and a net profit of €0.1 million for the first half of 2024.
What new initiatives did Kinepolis launch in 2024?
The company opened 12 new ScreenX theatres, 6 new Laser ULTRA screens, and further expanded its seating offerings across various locations.
Who is the new CFO of Kinepolis?
Mr. Pieter-Jan Sonck has been appointed as the new CFO of Kinepolis Group, reinforcing the company's leadership team.
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