Kinepolis Forges Ahead with New Sites, Renovations Despite Covid-19 Losses

Image courtesy: Kinepolis

Kinepolis had enjoyed a positive start to the year before the pandemic derailed its operations. The circuit saw an increase in admissions of 12 percent year-over-year through March 12, a bump that extended to ticket and F&B revenue as adjusted EBITDA per visitor rose during that period. 

The circuit began pausing operations in its multi-national network of cinemas on March 13. Since that date, the circuit reports a year-over-year drop in attendance of 54.1 percent for the first half of 2020. Admissions didn’t begin to pick back up until June, with the gradual reopening of locations in the Netherlands, Switzerland, Luxembourg, France, Spain, and Canada––albeit under capacity restrictions. The return in June contributed a total of 126,000 visitors in the second quarter, bringing the circuit’s global admissions figures to 8.1 million for the first half of the year. The top titles in the circuit over the first six months of 2020 are Bad Boys for Life, 1917, Sonic The Hedgehog, Star Wars: The Rise of Skywalker, and Jumanji: The Next Level.

Kinepolis saw a downturn in revenue of 52.7 percent during the first semester, earning a total of €112.6 million over the first half of the year. Revenue from ticket sales fell by 52.5 percent, to €62.4 million, while F&B revenue dropped by 52 percent, to €32.4 million. The circuit cites a net loss of €29.7 million, stemming from operational losses, increased financial costs, and higher depreciations and amortizations as a result of its 2019 expansion.

“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,” said Eddy Duquenne, CEO of Kinepolis Group. “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.”

Despite the slowdown in business, the group is forging ahead with new construction projects in Haarlem (Netherlands), Metz Waves (France), and South East Edmonton (Canada)––along with a renovation in Barcelona (Spain)––as previously planned. It will also be bringing four new Laser ULTRA screens, featuring Barco’s Cinionic laser projection technology, to its Landmark Cinemas locations in Canada this year. 

Photo Courtesy Kinepolis

Over the summer, Kinepolis launched its Kinepolis on Tour drive-in cinema concept in Belgium. The pop-up drive-in features the largest mobile LED screen in the world, according to the exhibitor. Kinepolis On Tour welcomed 7,800 cars across more than 65 screenings in July. It will continue touring throughout Belgian locations through the end of the summer.

Kinepolis Revenue Percentage By Country

COUNTRYH1 2020H1 2019
Belgium28.7%29.4%
Canada20.7%26.7%
Netherlands14.4%12.1%
France13.4%16%
United States10%Not Present
Spain8.6%11.5%
Luxembourg3.2%3.4%
Switzerland / Poland1%0.9%

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