The cinema chain Kinepolis has published its accounts for 2022 which show that the period marked the first year of recovery after a pandemic that kept cinemas closed for more than two years; during the first quarter of 2022, Kinepolis still had to face restrictive measures, and even, in some countries, closures.
Nevertheless, in 2022, Kinepolis welcomed an increase of 70.7% in visitors compared to 2021 (a year strongly disturbed by Covid), generating 87.7% more significant turnover. The attendance rate has recovered to 72.7% of its pre-Covid (2019) level, for a turnover reaching 90.6% of that of 2019. The strategy aimed at increasing the customer experience continues to bear fruit. Sales per visitor have never been so high.
Despite some spectacular blockbusters such as "Top Gun: Maverick" and "Avatar: The Way of Water", the number of releases of Hollywood films is still relatively limited in 2022. The pandemic in China has prompted Hollywood to postpone many films to 2023 and 2024.
The stabilisation of this situation, a global resumption of film production in 2022 and the renewed interest of the studios in the film model promise an increase in the offer of international films and in attendance in the coming years.
In this context, Kinepolis has however significantly improved its profitability and financial solidity in 2022, notably thanks to the pursuit of the "premiumisation" of its product offering and the successful implementation of its entrepreneurship plan. Kinepolis has also taken the first steps in pursuing its expansion strategy by making a number of interesting acquisitions.
As a sign of confidence in the future, the payment of a dividend will be proposed to the general meeting, but on the basis of a lower distribution ratio than that used in the past, until the company regain full financial strength.
Luxembourg
In Luxembourg, Kinepolis operates three cinemas (Kinepolis-Kirchberg, Kinepolis-Belval and Ciné Utopia). In 2022, it saw a total of 640,000 visitors (compared to 420,000 in 2021) and recorded revenues of €14.961 million in 2022 (€8.555m in 2021) and a capital expenditure of €603k (€836k in 2021). Luxembourg represents 3% of the Kinepolis group's activities.
Main achievements in 2022
- Complete implementation of the "Entrepreneurship 2022" plan, as an essential lever for the development of EBITDA in 2022
- Opening of Kinepolis Metz Amphithéâtre (FR)
- Acquisition of cinemas in Barcelona, Marbella (ES) and Amnéville (FR)
- Deployment of the Kinepolis concept in Canada and the United States (Premiere Seats, Laser ULTRA, VIP Seats)
- Transition towards laser projectors: 220 installations in 2022
Key figures 2022
- The total of products reached €499.9 million, an increase of 87.7% compared to 2021 or 90.6% of the turnover achieved by Kinepolis in 2019 (a record year).
- The products per visitor were maintained at a high level and were superior to those of 2021.
- Kinepolis welcomed 29.3 million visitors in 2022, an increase of 70.7% compared to 2021. This number of visitors represents 72.7% of that of 2019.
- The operating result adjusted for rents (EBITDAL) rose to €114.0 million (compared to €38.5 million at the end of 2021). The EBITDAL per visitor reached its highest level ever recorded, going from €2.24 to €3.89.
- The net profit amounted to €27.5 million.
- Free cash flow was established at €70.1 million for the year as a whole, compared to €48.9 million in 2021.
- The net financial debt, excluding lease payments, 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 to the general meeting a gross dividend of €0.26 per share. This corresponds to a distribution ratio of 25%, pending the recovery of the Group's solvency and a reduction of its debt.
Eddy Duquenne, CEO of Kinepolis Group, stated "I am particularly proud of the turnover and the result we achieved with this level of attendance. We are excited to see what Hollywood is doing in relation to its theatrical release calendar for the next few years. Especially when we observe the success of local films and Hollywood blockbusters over the past year. The approach that we have adopted with a focus on customer experience, combined with our entrepreneurship plan, has allowed Kinepolis to become one of the most solid players in the sector from a financial point of view. This not only gives us the necessary means to deploy a multitude of new ideas and concepts, for an even better customer experience, but also to pursue our expansion strategy."
