Kinepolis Group (KIN) Q4 2024 earnings summary

Executive summary

• Achieved strong annual results in 2024, with a record-breaking second half offsetting a weak first half impacted by the Hollywood strike and content shortages, resulting in a 7.9% decline in visitors but only a 4.5% revenue drop year-over-year.

• Premiumization and higher in-theatre consumption led to increased revenue per visitor, with premium concepts in the U.S. and Canada driving higher market share and revenue.

• Free cash flow reached an all-time high of €98.3m, up 15%, despite increased maintenance investments, supporting a stable dividend proposal of €0.55 per share.

• Net financial debt reduced to €319.3m from €378.3m, with leverage at 2.25x, indicating improved financial health.

• Continued expansion and innovation with new premium formats, cinema openings, and technology upgrades, regaining pre-pandemic financial performance.

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).

• Adjusted EBITDA margin: 28.9% (down from 31.1%); EBIT margin: 14.2% (down from 17.5%).

• Free cash flow: €98.3m (+15% YoY); cash conversion: 75%.

• Net financial debt (excl. leases): €319.3m (down from €378.3m); leverage: 2.25x.

• Dividend proposed at €0.55 per share, unchanged from 2023.

Outlook and guidance

• 2025 profit plan targets same EBITDA with 5% fewer tickets, continuing the annual 5% efficiency challenge.

• Anticipates further growth driven by innovation, premium concepts, and an expanded Hollywood film slate in 2025, with gradual recovery in visitor numbers.

• Internal expansion and premiumization initiatives to drive incremental revenue per visitor.

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

• Kinepolis expects to maintain pre-pandemic performance despite a slower Hollywood recovery.