Belgian cinema group Kinepolis posts first annual loss in over decade (updated)

Kinepolis NV

25/02/2021 06:34

(Adds detail from statement)
    Feb 25 (Reuters) - Belgian cinema company Kinepolis Group
 KIPO.BR  on Thursday reported its first annual loss in at least
13 years, following months of forced closures,
coronavirus-related restrictions and blockbuster delays.
    The group, which operates over 100 cinemas across Europe and
North America, posted a 2020 loss of 69.1 million euros ($84.15
million) on sales of 176.3 million euros, down 68%.
    Analysts in a company-provided consensus had forecast a
current net loss of 75.5 million euros from sales of 183.8
million.
    "Kinepolis can stand firm for quite some time and we can say
with certainty that our company will survive this crisis," said
Eddy Duquenne, the firm's chief executive in a statement,
pointing to tight cash burn and good liquidity.
    Cinemas have been battered by health restrictions under the
pandemic, which have shut or restricted screenings and moved
major studios to release their films simultaneously on home
streaming services, further denting box office income.
    AMC Entertainment  AMC.N , the world's largest cinema chain,
is expected to post revenues down 89.3% later on Thursday, while
Cineworld  CINE.L , the second-biggest, temporarily shut all its
U.S. and UK theatres in October.  urn:newsml:reuters.com:*:nL4N2GW14V  urn:newsml:reuters.com:*:nL8N2KT3Q5 
    Throughout 2020, Kinepolis welcomed 12.1 million visitors,
compared to its initial expectations of over 45 million.
    With most cinemas still closed under health measures, it did
not give a forecast for 2021 and proposed not to pay out a
dividend for the past financial year.
    Analysts expect that revenues this year will again come to
well below pre-coronavirus levels, and do not expect the company
to return profits until 2022.

($1 = 0.8212 euros)

 (Reporting by Sarah Morland in Gdansk
Editing by Tomasz Janowski)
 ((sarah.morland@thomsonreuters.com; +48 58 769 65 92;))