Belgium-based theater chain Kinepolis reported a 15.9% increase in revenue to €551.5 million in 2019, citing positive results from its business strategy and favorable market conditions in Europe. Visitor-related revenue increased by 17.8%.
The multi-national circuit had 40.3 milion visitors in 2019 (a 13.3% rise), and an EBITDA increase of 23.8% to €145.0 million, excluding new lease-accounting requirements. Net profit increased by 14.7% to €54.4 million.
“The continued execution of our business strategy, aimed at finding new revenue sources and reducing our break-even point every year by introducing small improvement steps, has been providing solid results for 13 years in a row,” said CEO Eddy Duquenne. “On top of that, in 2019 this was supported by a strong content lineup.”
Duquenne continued, “We have again taken important steps in the further execution of our expansion in the past year, including the acquisition of the American cinema group MJR. As a result, we now already realize 30 percent of our visitor numbers in the North American market. In this respect, it is encouraging to see that the introduction of our business strategy and concepts in Canada is going well.” Kinepolis acquired Landmark Cinemas, Canada’s second-largest theater circuit, in September 2017.
Kinepolis’s accomplishments in 2019 included the opening of new cinema complexes in France (Servon) and Canada (Regina and Calgary Market Mall); acquisition and integration of the El Punt cinemas in Barcelona and Alzira, Spain; acquisition of the Arcaplex cinema in Spijkenisse, Netherlands; the opening of a new IMAX theatre in Antwerp, Belgium; the opening of various 4DX motion and effects theaters and panoramic ScreenX theatres; and the continued rollout of its Laser Ultra concept.
Kinepolis reported that the decline in the number of visitors in Belgium during the first half of the year (-10.7%) was fully offset by a strong second half, thanks in part to the success of FC De Kampioenen 4: Viva Boma!. Meanwhile, Spain, France and the Netherlands all saw solid growth.
Revenue from B2B increased by 9.7%, with Belgian screen advertising division Brightfish seeing a 20.5% uptick.
Kinepolis attributed the rise in box office revenue partly to the success of its premium offerings such as Cosy Seats, Laser Ultra, 4DX, and ScreenX; a higher share of 3D; the growth of alternative content in all countries, and a number of inflation-compensating measures.
Kinepolis reported €173.9 million of investments in external expansion, with the acquisition of MJR, El Punt, and Arcaplex. In addition, €45.3 million was invested in the construction of new complexes, renovation of acquired cinemas, product innovation, and the rollout of experience concepts in existing and acquired cinemas.
Upcoming Kinepolis locations include a new Landmark Cinemas 8-screen complex at the “Grove on 17” site in southeast Edmonton, Canada, and a 6-screen theater at the Schalkwijk Centre in Haarlem, the Netherlands. Both are scheduled to open in the fourth quarter of 2020.
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