Kinepolis Group Model update after FY23: there is firepower again for potential acquisitions
We updated our model after the good set of FY23 results. Nevertheless, we lowered slightly our FY24E visitor numbers from 37.0m to 36.1m as after Dune: Part Two, the first blockbuster of 2024, we expect a relative soft line-up until 4Q24.As we see further improvement in Box Office per visitor and in ITS (In Theatre Sales) per visitor, Kinepolis Group's Free Cash Flow generation will further accelerate. As a result, the net debt (excl. lease) to EBITDAL ratio will come to comfortable levels, paving the way for new acquisitions once management feels it is time to do so.
We maintain our € 55 Target Price and Buy rating.
Kinepolis Group NV is a Belgium-based company, which is primarily engaged in the operation of cinemas. The Company's activities are divided into such business units, as Box office, In-theatre sales, Business-to-business (B2B), Film distribution and Real Estate. The Box office unit includes sale of the tickets. The In-theatre sales unit is involved in the sale of snacks and related articles. The B2B unit takes care of the organization of corporate events and the sale of screen advertizing to corporate customers. The Film distribution unit includes all activities related to movies showed in the cinema. The Real Estate is responsible for the property management and utilization. Additionally, the Company has a Technical department, which delivers technological support to Kinepolis facilities. The Company is present in Belgium, France, Spain and Poland.
We are a financial services provider for several types of professional clients, each with distinct needs.
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