Kinepolis Group (KIN) H2 2023 earnings summary

Executive summary

• Record FY 2023 revenue, EBITDAL and net profit; visitor growth and higher per-visitor spending lifted results beyond pre-pandemic levels.

• Adjusted net result nearly doubled to €56.3m; free cash flow reached €85.5m and net financial debt excluding leases declined.

• Visitor numbers continued to recover, but an incomplete Hollywood film offering, partly due to strikes, weakened Q4.

Financial highlights

• Revenue rose 21.1% to €605.5m; at constant exchange rates, revenue would have been €616.5m.

• EBITDA was €186.9m; adjusted EBITDA rose 23.2% to €185.9m, with a 30.7% margin. EBITDAL increased 32.8% to €151.4m, with margin up 220 bps to 25.0%.

• EBIT was €106.0m; adjusted EBIT increased 53.0% to €106.3m, with a 17.6% margin. Net result rose 103.7% to €56.1m; adjusted result was €56.3m and EPS €2.08 vs €1.02.

• Box Office revenue rose 22.1% to €318.6m; in-theatre sales increased 24.2% to €192.8m.

Outlook and guidance

• A broader Hollywood release slate in 2024 supports confidence in attendance recovery; full recovery of film supply is expected by 2025/2026.

• Growth plans include premium concepts and external expansion; 75 laser installations are planned for 2024, targeting 66% laser coverage by year-end.

• A new eight-screen Landmark cinema in Windsor, Ontario, is scheduled to open in autumn 2024.

• The Board will propose a gross dividend of €0.55 per share for FY 2023, payable from 15 May 2024 subject to General Meeting approval.