Kinepolis Group ticket sales up by 6%

 

Last year, Kinepolis Group achieved growth of 6%, mainly thanks to top international films such as Pirates of the Caribbean 2, The Da Vinci Code and Ice Age 2, but also due to local successes including Les Bronzés 3 (France and Wallonia), Windkracht 10 (Flanders), Alatriste (Spain) and Tylko Mnie Kochaj (Poland). Les Bronzés 3 even reached fourth place among the leading international films.

The increase in visitor numbers was also underpinned by the group's newest complexes, Kinepolis Granada (2004), Kinepolis Nancy (2005) and Kinepolis Brugge (July 2006), which recorded successful visitor figures. On a comparable basis (without Kinepolis Nancy and Kinepolis Brugge), international visitor numbers rose by 4%. As at 30 June 2006 ticket sales had generated 62% of the total Kinepolis Group revenue.

 

A pattern emerged at group level in 2006, with decent first and third quarters, an outstanding second quarter and a moderate end to the year.

June proved to be the weakest month of the year for Kinepolis Group, while August (Pirates of the Caribbean 2) was the best month of all, with figures up no less than 32% compared with August 2005. The end-of-year period, dominated by the latest Bond film, Casino Royale, was unfortunately not a patch on the same period in 2005 (which saw a concentration of blockbusters) but this was amply offset by the favourable results over the rest of the year.

 

 

Belgium: Kinepolis Brugge, Kinepolis' most recent complex, got off to a tremendous start, welcoming 333 000 visitors in less than six months. In terms of local films, the cinema world in Flanders was marked in particular by the success of De Hel van Tanger, Windkracht 10, and the latest films from the production company Studio 100 (K3, Piet Piraat, Kabouter Plop). In the Cinémanie segment (programming directors' movies) Brokeback Mountain scored particularly well, while the documentary An Inconvenient Truth caused a surprise. The controversial Borat did exceptionally well in Flanders. In the French-speaking part of the country, the main hits were Les Bronzés 3 and Prête Moi ta Main.

 

France: French films did extremely well in 2006, led by Les Bronzés 3. Camping and La Doublure also won places in the French top ten, while La Maison du Bonheur, Nos Jours Heureux, Je Vais Bien Ne t'en Fais Pas, Prête Moi ta Main, and Ne le Dis à Personne also did outstandingly well.

Only half the French Christmas holiday period fell in the 2006 calendar year. The previous year, the Christmas period fell entirely in 2005, and this curtailed growth in France during the last quarter of 2006 compared with the same peak period in 2005. Kinepolis Nancy (which opened in September 2005) recorded growth of over 30% during the past quarter.

 

Spain: The heroic film Alatriste and the film Volver proved the Spanish hits of the year.

Kinepolis Granada (which opened in June 2004) also recorded a substantial increase in visitor numbers in 2006 (+28%), thanks to the steady increase in market share, and the running of an open-air cinema in Granada during the summer months. Kinepolis Madrid continued to be hampered by the work on the tram lines in 2006, but this work will considerably improve future access to Kinepolis Madrid.

  

Poland: Kinepolis Poznan recorded superb results in 2006. The main growth came in the first half of the year, thanks mainly to local productions, including Tylko Mnie Kochaj (Just love me) and Ja Wam Pokaze (Let me show you something). The films about the late pope, John Paul II and Karol, Un Papa Rimasto Uomo, also proved extremely successful.

 

The year 2007 promises to be a good time for films, with various major sequels, including Spiderman 3, Pirates of the Caribbean 3, Shrek 3,Ocean's 13 and Harry Potter and the Order of the Phoenix.

The main films to watch for in the first quarter of 2007 are Charlotte's Web, Blood Diamond, Night at the Museum and Taxi 4.

 

At the end of 2006, the Kinepolis Group Board of directors, chaired by Mr Hugo Vandamme, co-opted

-          Mr  Philip Ghekiere (Management Committee The Capital Markets Company)

-          Mr  Eddy Duquenne (Managing Director, Sunparks Group)

-          Ms Mimi Lamote (until recently Managing Director of SCF)

as non-executive directors, replacing Mr André Meers, Mr Peter Bert and Ms Marie-Rose Claeys-Vereecke.

Mr Ghekiere was appointed Vice-Chairman of the Board of Directors.

 

The change in the composition of the Board of Directors is part of the recent reshuffle among the shareholders and reflects the intention to reinforce the Board by including external and independent directors with substantial experience of business life. In the new composition of the Board, account was taken of the diversity and complementary nature of skills and aptitudes. For instance, the co-opted directors have respectively a mainly legal profile, a financial background and knowledge of the retail sector.

 

A further director's mandate will be filled in the near future.

Current composition of the Board of Directors, the Audit Committee and the Remuneration Committee: http://investors.kinepolis.com/index.cfm?PageID=15863

 

Kinepolis Group announces that an agreement has been reached with the Israeli group IT International Theaters (ITIT) on leasing and transferring the operation of 18 of the 20 auditoriums at Kinepolis Poznan, the group's only complex in Poland. The remaining two auditoriums will continue to be run by Kinepolis and will be used for events or commercial purposes.

 

Kinepolis Group will therefore remain the owner of the land and buildings and will continue to manage the real estate activities, which include renting commercial premises and site development. Kinepolis Group and ITIT are to run the megaplex under the name 'Cinema City Kinepolis'.

 

This cooperation agreement creates an opportunity for both parties. It will enable ITIT to extend its operating activities in Poland. Kinepolis Group is consolidating and optimising its current presence in Poland, while on-going project development activities in Eastern Europe are continued. The monthly rental income resulting from this agreement will fully replace the former operating turnover.

Kinepolis Poznan was opened in 2001 and comprises 20 auditoriums and 7338 seats.