Kinepolis responds quickly and decisively to the crisis, and is looking forward to the future with confidence
20 Agosto 2020 - 7:00AM
Kinepolis responds quickly and decisively to the crisis, and is
looking forward to the future with confidence
Kinepolis responds quickly and decisively to the crisis,
and is looking forward to the future with confidence
Regulatory releaseHalf-yearly financial report 2020
20 August 2020, 7 a.m.
As is known, Kinepolis was forced to close all its cinemas from
mid-March onwards following the Covid-19 outbreak. During the month
of June, cinemas in several countries, namely in the Netherlands,
Switzerland, Luxembourg, France, Spain, and some in Canada, were
cautiously reopened, although with important capacity restrictions
and other safety measures. As a result, the contribution of the
second quarter to the results of the first half of the year was
negative.
Up to the closing of the cinemas in all the countries where
Kinepolis is active, the Group recorded an increase in visitors and
financial results, partly due to its recent acquisitions.
The strategy and nature of the company, characterised by a
maximum variability of costs, a solid real estate position, with a
large proportion of cinema real estate owned, a self-learning
organisation and a 'facts and figures'-driven corporate culture,
have helped Kinepolis to respond quickly and decisively to the
current crisis.
In the explanation of the results for the first half of 2020, we
make a distinction between the results before the closure of the
first cinemas1 and the results for the entire first half of the
year.
Results for 2020, up to and including 12 March
(excluding the impact of Covid-19)2
- Up to and including 12 March, the number of
visitors increased by 12.0%, thanks to the addition of the
American activities acquired in the fourth quarter of 2019.
- Revenue from ticket, beverage and snack sales
showed a stronger increase than the number of visitors, mainly due
to an increase in revenue per visitor in almost all countries.
- Adjusted EBITDA per visitor
rose, despite a slightly negative effect caused by the changed
country mix as a result of the US market being added, and a
consequently lower share for Belgium.
Results for the first half of 2020 (including the impact
of Covid-19)3
- The number of visitors fell by 54.1%, to 8.1
million visitors
- Total revenue dropped by 52.7%, to € 112.6
million.
- Adjusted EBITDA decreased by 76.6%, to € 16.4
million.
- The net result amounted to € -29.7 million,
due to the lower operating result, increased financial costs and
higher depreciations and amortisations as a result of the expansion
in 2019.
- The net financial debt, compared to 31
December 2019, excluding lease liabilities, increased to € 462.8
million.
- Free cash flow amounted to € -29.4 million due
to the lower operating result, the evolution of the working capital
and higher interest paid.
Important achievements in H1 2020
- Construction progress in Haarlem (NL), Leidschendam (NL), Metz
Waves (FR) and South East Edmonton (CA) as planned.
- Renovation of previously acquired "Full" cinema in Barcelona
(ES).
- Further roll-out of laser projection, including four new Laser
ULTRA theatres in Canada.
- Successful reopening campaign in all European countries and
Canada.
- Launch of the brand-new "Kinepolis on Tour" drive-in cinema
concept in Belgium.
Kinepolis has taken various measures in recent months with a
view to protecting its customers, employees and the company in the
light of the Covid-19 pandemic and the measures taken by the
authorities.
Kinepolis entered the crisis with a strong cash position, and
subsequently made every effort to adjust its costs as much as
possible and in the very short term to the impact of the Covid-19
virus on its activities. The measures taken include a drastic
scaling back of the number of active employees, thereby drawing on
the support measures in each country, both in cinemas and at the
support services level in the national and international
headquarters. In addition, various measures were taken to limit the
'cash out', such as the decision not to pay a dividend for 2019,
negotiations with suppliers and the owners of rented cinemas with a
view to obtaining financial concessions as a result of the
reduction or closure of the activities, as well as the maximum
postponement of all investments, except for the new-build projects
already in progress.
Eddy Duquenne, CEO of Kinepolis Group, regarding the
first half of the year:
“I am proud of the determination and speed with which our teams
have responded to the current crisis, making it possible for us to
protect our customers, employees and the company to the best of our
ability. Given the exceptional and challenging circumstances, we
are continuing to closely monitor the cash position of our company,
and the associated cost control is proceeding according to plan.
This means that our Group will be able to cope with the Covid-19
impact for a considerable time to come. Considering the lack of new
international film content and the drastic measures taken to
protect public health - which are more drastic in some countries
than others - we receive a rather limited, but nevertheless
encouraging number of visitors this summer. Our customer survey
also shows that moviegoers appreciate the measures we have taken
and feel comfortable during their visit. This strengthens our
confidence that we can quickly return to achieving results once the
external conditions are favourable again.”
Full semestrial financial report attached.
1 The first cinemas were closed on 13 March, with all the others
following shortly afterwards.2 Visitor numbers and revenue up to
and including 12 March. Other trends based on the figures available
at the end of February. Comparisons are made in relation to the
same period of the previous year.3Figures from 1 January up to and
including 30 June 2020, compared to the same period in the previous
year.
- EN_Financial report H1 2020
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