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In the first half of 2018, thanks to the Group's expansion, Kinepolis achieved 38.5% more turnover with 45.1% more visitors. Net current profit increased by 13.6% to €18.7 million. The REBITDA increased by 18.0% during this period. The integration of the Canadian cinema group Landmark Cinemas, acquired in December 2017, is proceeding according to plan and contributed significantly to the Group's results. In Europe, the further implementation of the business strategy and product innovation resulted in a further increase in sales and EBITDA per visitor, all this against a background of weaker visitor numbers due to a long period of uninterrupted hot weather and the football World Cup.
Key figures for the first half of 2018]:
The number of visitors increased by 45.1% to 17.1 million, thanks to the expansion.
Total revenue increased by 38.5% to €221.8 million, while revenue from the sale of tickets, drinks and snacks increased by 46.2%.
The current[3] EBITDA[4] (REBITDA) increased by 18.0%, to €51.9 million. The REBITDA per visitor increased in almost all countries.
Net current profit increased by 13.6% to €18.7 million.
The free cash flow[5] increased by 80.3% to €15.6 million.
Net financial debt increased by 36.0%[6] to €305.0 million, partly as a result of the acquisition of NH Bioscopen, the dividend payment and the share buyback program.
Eddy Duquenne, CEO Kinepolis Group, about the first half-year:
"The results for the first half of 2018 were significantly affected by our expansion. Our recent acquisitions, notably the acquisition of the Canadian Landmark Cinemas and the Dutch NH Bioscopen, have led to a strong increase in visitor numbers and total revenue. Excluding the expansion, most European countries experienced a decline in visitor numbers due to the less successful range of films released in the second quarter, an exceptionally long period of uninterrupted hot weather and the football World Cup. In the first half of the year, the Netherlands recorded a 15.0% increase in the number of visitors thanks to the further growth of newly opened complexes and the acquisition of NH Bioscopen. In Belgium and in Spain, the decline was limited throughout the first semester thanks to some successful local films, such as 'Patser', 'FC De Kampioenen 3' and 'Campeones'.
The further implementation of Kinepolis's three-pillar strategy and, in particular, its focus on offering premium experiences, such as Cosy Seats, 4DX and Laser ULTRA, again resulted in an increase in sales per visitor. The evolution of both Box Office (BO) and In-Theatre sales (ITS) revenue was subject to a significantly altered country mix, following the addition of Canada, a market with a lower-than-average BO per visitor and a higher-than-average ITS consumption per visitor. Landmark Cinemas Canada now represents 27.1% of total revenue and is second only to Belgium, accounting for 32.5% of revenue.
As foreseen, the addition of Canada results in a lower average REBITDA per visitor and EBITDA margin, as more than 95% of visitors in Canada are welcomed in rented facilities. Excluding expansion, the REBITDA per visitor increased in Europe.
I'm very enthusiastic about our acquisition in Canada: the integration is proceeding according to plan. A new organisational structure, which aims at implementing our corporate strategy, was rolled out over the past six months. The further roll-out of recliner seats in various complexes and the opening of two new complexes resulted in an increase of our market share and financial results in Canada."
Eddy Duquenne concludes:
"Despite the good weather and less successful films released in the second quarter, Kinepolis is managing to continue to grow. Our innovation and premiumisation strategy continues to pay off, combined with further increased operational performance and successful expansion. In the coming period, the implementation of our corporate strategy within the Canadian organisation will remain high on the agenda. As management, we will also continue to focus on new expansion."
Full semestrial financial report attached via the link.
Key figures for the first half of 2018]:
The number of visitors increased by 45.1% to 17.1 million, thanks to the expansion.
Total revenue increased by 38.5% to €221.8 million, while revenue from the sale of tickets, drinks and snacks increased by 46.2%.
The current[3] EBITDA[4] (REBITDA) increased by 18.0%, to €51.9 million. The REBITDA per visitor increased in almost all countries.
Net current profit increased by 13.6% to €18.7 million.
The free cash flow[5] increased by 80.3% to €15.6 million.
Net financial debt increased by 36.0%[6] to €305.0 million, partly as a result of the acquisition of NH Bioscopen, the dividend payment and the share buyback program.
Eddy Duquenne, CEO Kinepolis Group, about the first half-year:
"The results for the first half of 2018 were significantly affected by our expansion. Our recent acquisitions, notably the acquisition of the Canadian Landmark Cinemas and the Dutch NH Bioscopen, have led to a strong increase in visitor numbers and total revenue. Excluding the expansion, most European countries experienced a decline in visitor numbers due to the less successful range of films released in the second quarter, an exceptionally long period of uninterrupted hot weather and the football World Cup. In the first half of the year, the Netherlands recorded a 15.0% increase in the number of visitors thanks to the further growth of newly opened complexes and the acquisition of NH Bioscopen. In Belgium and in Spain, the decline was limited throughout the first semester thanks to some successful local films, such as 'Patser', 'FC De Kampioenen 3' and 'Campeones'.
The further implementation of Kinepolis's three-pillar strategy and, in particular, its focus on offering premium experiences, such as Cosy Seats, 4DX and Laser ULTRA, again resulted in an increase in sales per visitor. The evolution of both Box Office (BO) and In-Theatre sales (ITS) revenue was subject to a significantly altered country mix, following the addition of Canada, a market with a lower-than-average BO per visitor and a higher-than-average ITS consumption per visitor. Landmark Cinemas Canada now represents 27.1% of total revenue and is second only to Belgium, accounting for 32.5% of revenue.
As foreseen, the addition of Canada results in a lower average REBITDA per visitor and EBITDA margin, as more than 95% of visitors in Canada are welcomed in rented facilities. Excluding expansion, the REBITDA per visitor increased in Europe.
I'm very enthusiastic about our acquisition in Canada: the integration is proceeding according to plan. A new organisational structure, which aims at implementing our corporate strategy, was rolled out over the past six months. The further roll-out of recliner seats in various complexes and the opening of two new complexes resulted in an increase of our market share and financial results in Canada."
Eddy Duquenne concludes:
"Despite the good weather and less successful films released in the second quarter, Kinepolis is managing to continue to grow. Our innovation and premiumisation strategy continues to pay off, combined with further increased operational performance and successful expansion. In the coming period, the implementation of our corporate strategy within the Canadian organisation will remain high on the agenda. As management, we will also continue to focus on new expansion."
Full semestrial financial report attached via the link.