Kinepolis : In 2016 Kinepolis posted 7.7% higher revenue with 7.5% more visitors and continued to successfully implement its expansion strategy

Regulatory release
17 February 2017, 7 a.m.

Key figures 2016 vs. 2015:

• A 7.5% rise in visitor numbers to 23.8 million, due to the Group expansion.
   
• Total revenue increased by 7.7% to € 324.9 million, due to the rise in visitor numbers, higher sales per visitor and increased B2B and real estate revenue.
   
• Current EBITDA (REBITDA) rose by 4.0% to € 94.6 million. REBITDA per visitor increased in all countries except for France.
   
• Current profit decreased by 6.5% to € 40.4 million due to higher depreciations as a consequence of the expansion and a higher effective tax rate. Profit increased by 47.7% to € 47.6 million due to revenue from the sale of Utopolis and one-off tax expenses in 2015. Earnings per share were € 1.75.
   
• The net financial debt rose by only 4.8% to € 169.8 million in spite of heavy investments in expansion, which amounted to € 71.7 million for, among other things, the construction of the five new complexes, partly offset by the revenue from the sale of Utopolis Belgium, amounting to € 34.99 million.
   
• Free cash flow decreased by 18.8% to € 53.6 million due to higher interest and tax payments.
   
• The proposed dividend per share is € 0.87, a rise of 10.1%, on the basis of a 50% pay-out ratio and the number of shares entitled to dividend on 17 February 2017.

Kinepolis welcomed 7.5% more visitors in 2016 compared with the previous year, primarily due to acquisitions in 2015 that were included in the figures for the whole year for the first time, the acquisition of a cinema in Rouen (France) in January 2016 and newly opened cinemas in the Netherlands (Dordrecht, Breda, Utrecht), Spain (Granada) and France (Fenouillet). The film offer in 2016 was unable to match an exceptional 2015, which included 'Star Wars: The Force Awakens', 'Minions' and 'Jurassic World', and local content also disappointed in most countries, except for France, due to the success of 'Les Tuche 2'. The later Christmas holiday and the European football championship also played a role in the lower visitor numbers.

At 7.7%, total revenue increased faster than visitor numbers, thanks to the rise in revenue across all activities. Only Brightfish generated less revenue. Sales of beverages and snacks (In-theatre sales) rose by 9.6%, in spite of the negative impact of the country mix due to the lower share of Belgium. More products were bought per person in all countries and there was a relative increase in the number of shop visitors in Belgium and the Netherlands. At 7.3%, revenue from ticket sales (Box Office) rose a little less sharply than visitor numbers, primarily due to the changed country mix and the loss of part of the Virtual Print Fee (VPF). 

B2B revenue (+9.5%) increased due to the expansion, higher sales of cinema vouchers to businesses and higher revenue from screen advertising in all countries except for Belgium, where the national advertising market declined further. Revenue from real estate activities also rose (+11.9%), primarily due to higher revenue from concessions operated by the company, a higher occupancy rate and the impact of the expansion. After a less positive 2015, Kinepolis Film Distribution (KFD) experienced an outstanding 2016 (+38.0%), primarily due to successful local releases such as 'Safety First' and 'Achter de Wolken' in the spring and 'De Premier' and 'De Buurtpolitie' in the autumn. The revenue of Brightfish fell by 12.8%, as a consequence of the further drop in revenue from Belgian screen advertising.

Current EBITDA rose less strongly, by 4.0% to € 94.6 million, primarily due to the changed country mix, the ongoing process of integrating acquired cinemas and the acquisition of Utopolis with partly leased complexes. REBITDA per visitor increased in all countries except for France.

Talking about the 2016 results, Eddy Duquenne, CEO of Kinepolis Group, said: "2016 was a tough film year, but a successful year for Kinepolis. In spite of the rather weak film offer and external factors, such as fewer holidays in 2016 and the European football championship, we have posted solid results. The commercial and operational efficiency of our existing activities continues to improve. We also took some big steps in the ongoing implementation of our expansion strategy in 2016. We acquired a cinema in Rouen, opened no fewer than five new build projects and converted various acquired cinemas to the Kinepolis concept. This was all achieved against the backdrop of an ongoing integration of acquired complexes."

Full report annual results 2016 attached.