Kinepolis Group (KIN) Q2 2024 earnings summary

Executive summary

• Visitor numbers fell 16.7% year-over-year in H1 2024 due to a weak blockbuster line-up, impacted by the Hollywood strike, but a recovery began in June with major releases and a strong autumn line-up expected.

• Revenue, EBITDA, EBITDAL, and profit all declined compared to H1 2023, but revenue per visitor increased slightly, reflecting successful premium offerings.

• Kinepolis continued investing in innovation, opening new ScreenX and Laser ULTRA theatres, expanding premium seating, and renovating cinemas.

• Appointment of Pieter-Jan Sonck as new CFO and receipt of the 2024 Milestone Award at CineEurope.

Financial highlights

• Total revenue: €242.8m, down 14.9% year-over-year; visitors: 14.0m, down 16.7%.

• EBITDA: €54.4m (down 33.7%); EBITDAL: €37.1m (down 42.3%); EBIT: €14.4m (down 66.5%).

• Net profit: €0.1m, compared to €20.8m in H1 2023; EPS: €0.00 vs €0.77.

• Free cash flow: €12.5m, down from €22.4m; net financial debt (excl. leases): €392.0m, up from €378.3m at year-end 2023.

• Cost of sales decreased by 6.8% due to lower activity, partially offset by inflation and higher personnel costs.

Outlook and guidance

• Stronger film line-up expected in H2 2024, with anticipated blockbusters and a return to higher visitor numbers.

• Management expects improved performance as the Hollywood pipeline recovers and premium experiences continue to drive revenue per visitor.