Belgian exhibition group Kinepolis grew its cinema attendance by 45% in the first of 2018, thanks largely to the groups’ acquisition strategy.
In December 2017, the purchase of Canadian Landmark Cinemas for $123m, as well as the Dutch NH Bioscopen, led to admissions rising by 45.1% to 17.1m over the forst half of the year, with total revenue growing by 38.5% to EUR221.8m. Net profit increased by 13.6% to EUR18.7m. However, outside of the acquisitions, attendance wasn’t uniformly positive, with hot weather and the World Cup affecting performance. Canada now represents 21.7% of the group’s total revenue behind Belgium which accounts for 32.5% of revenue.
The group is focusing on expansion and places much strategic emphasis on premium experiences. In their case, this includes Cosy Seats, 4DX and Laser ULTRA. The Canadian chain has affected some core metrics as most cinemas are housed in rented sites, contrary to the European estate, and the average Canadian customer has a lower BO per head but a higher F&B revenue per head than its European counterparts.