Kinepolis Group (KIN) H2 2024 earnings summary

Executive summary

• Achieved strong annual results in 2024, with a record second half offsetting a weak first half impacted by the Hollywood strike and content delays, resulting in a 7.9% decline in visitors but only a 4.5% drop in revenue due to premiumization and higher revenue per visitor.

• Premium concepts and innovation in the U.S., Canada, and Europe drove higher market share, revenue, and operational agility, with continued rollout of IMAX, ScreenX, Laser Ultra, and premium seating.

• Non-visitor-related activities (screen advertising, B2B, real estate) exceeded 2019 and prior year levels, supporting overall performance.

• Free cash flow reached a record €98.3m, up 15%, enabling reduced net financial debt and a stable dividend proposal of €0.55 per share.

• Financial strength returned to pre-pandemic levels, with improved solvency, lower debt, and opportunities for further expansion.

Financial highlights

• Revenue: €578.2m (-4.5% YoY); visitors: 32.6m (-7.9% YoY); adjusted EBITDA: €167.3m (-11.1% YoY); adjusted EBITDAL: €132.7m (-13.1% YoY).

• Net financial debt (excl. leases): €319.3m, down from €378.3m; leverage at 2.25x; equity up 16.6% to €225.9m.

• Free cash flow: €98.3m (+15% YoY), with a 75% cash conversion rate.

• Dividend proposal maintained at €0.55 per share (€14.7m total), unchanged from prior year.

• EBITDA margin: 28.6% (down from 30.9%); ROCE: 8.8% (down from 11.1%).

Outlook and guidance

• 2025 profit plan targets maintaining EBITDA with 5% fewer tickets, continuing operational improvement and premiumization.

• Anticipates further growth from innovation, premium concepts, and an expanded Hollywood film slate, with more wide releases and blockbuster content expected in 2025 and a further step-up in 2026.

• Internal expansion and premium concepts to drive incremental revenue per visitor; external M&A opportunities being explored.

• CapEx guidance for 2025 expected to be in line with 2024, excluding external expansion.