In the third quarter of 2022, Kinepolis welcomed 74.3% of the visitors that were received in the same period in 2019 (pre-Covid). The recovery of cinema attendance was promising in the first half of the year, but then suffered from a weaker offering of films during a very hot summer. In 2022, up to and including the month of September, Kinepolis welcomed 76.1% of the visitors welcomed in the same period in 2019.
Sales per visitor remained high in the third quarter, resulting in a proportionally higher turnover compared to the realised visitor numbers.
Despite a slower than expected recovery in visitor numbers, Kinepolis continued to generate a positive EBITDA and operational cash flow in the third quarter, with the Group remaining financially solid, partly helped by its Entrepreneurship plan. The film offering for the fourth quarter looks promising.
Key figures for the third quarter 2022
Eddy Duquenne, CEO Kinepolis Group: “As anticipated, we had a weaker quarter as a result of the lack of new film releases. As an illustration, in September ‘Top Gun: Maverick’ – nearly four months after its release – was the most popular film in our cinemas. However, consumption per customer does remain high, and customer satisfaction is also good. We are looking forward to a successful fourth quarter, with a promising offering of films, also in terms of local content.”
In the third quarter, Kinepolis welcomed 74.3% of the visitors welcomed in the same period in 2019, partly thanks to the expansion of the Group since 2019. Although the recovery of cinema attendance was promising in the first half of the year, it then suffered from a weaker offering of films, a hot summer and a large number of leisure alternatives.
The top 5 films in the third quarter of 2022 were ‘Minions: The Rise of Gru’, ‘Thor: Love and Thunder’, ‘Top Gun: Maverick’, ‘Bullet Train’ and ‘Elvis’. The most successful local films were ‘Menteur’, ‘Ducobu Président!’ and ‘Irréductible’ in France, ‘Padre no hay más que uno 3’ and ‘Tad the Lost Explorer and the Emerald Tablet’ in Spain, ‘Bon Bini Holland 3’, ‘Soof 3’ and ‘De Allergrootste Slijmfilm’ in the Netherlands and ‘Ritueel’ and ‘Onze Natuur’ in Belgium.
In the third quarter, visitor-related revenue rose more strongly than visitor numbers compared to the same period last year. Revenue from ticket sales (Box Office), as well as revenue from the sale of drinks and snacks (In-theatre Sales), showed an increase per visitor.
Revenue from almost all other business lines – namely the revenue from B2B activities, screen advertising and real estate – increased compared to the same period in 2021.
Both EBITDA and EBITDAL (EBITDA adjusted for leases) were positive in the third quarter, thanks to the increased visitor numbers, higher consumption in all countries and the impact of the implementation of the Entrepreneurship Plan. EBITDA(L) per visitor, however, decreased compared to the same period last year, mainly as a result of compensations received in the third quarter of 2021 as a consequence of the Covid-19 pandemic.
Free cash flow, excluding working capital, was positive for the third quarter, thanks to the operating result, somewhat offset by higher maintenance investments and income taxes paid.
In the third quarter, € 5.2 million was invested in external and internal expansion.
Although the operating result was positive in the third quarter, the continued investment rhythm, prepaid income taxes and the impact of working capital resulted in an increase of the net financial debt, excluding lease liabilities, from € 450.0 million at the end of June 2022 to € 460.1 million at the end of September 2022.
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Kinepolis Group NV was formed in 1997 as a result of the merger of two family-run cinema groups and was listed on the stock exchange in 1998. Kinepolis offers an innovative cinema concept which serves as a pioneering model within the industry. In addition to its cinema business, the Group is also active in film distribution, event organisation, screen publicity and property management.
In Europe, Kinepolis Group NV has 61 cinemas spread across Belgium, the Netherlands, France, Spain, Luxembourg, Switzerland and Poland. Since the acquisition of Canadian movie theatre group Landmark Cinemas and American movie theatre group MJR Digital Cinemas, Kinepolis also operates 40 cinemas in Canada and 10 in the US.
In total, Kinepolis Group currently operates 111 cinemas worldwide, with a total of 1,125 screens and approx. 200,000 seats. Kinepolis’ employees are all committed to giving millions of visitors an unforgettable movie experience. More information on www.kinepolis.com/corporate.