Cinema operator Kinepolis can weather closures, CEO says

Kinepolis NV

17/02/2022 13:56

By Olivier Sorgho
    Feb 17 (Reuters) - Belgian cinema operator Kinepolis
 KIPO.BR  has enough cash to survive prolonged closures if
pandemic-related curbs drag on, its chief executive told Reuters
on Thursday after it reported a smaller than expected loss for
2021.
    "But of course that's not the goal," said CEO Eddy Duquenne,
who called the group's strong cash position "the oxygen" it
needed to survive, though he hoped the sector was nearing the
end of the COVID-19 crisis.
    The pandemic has left its mark on the industry, forcing many
cinemas to close or restrict screenings, while studios either
postponed blockbusters or released them directly on home
streaming platforms, denting box office earnings. 
    In 2020, these restrictions handed Kinepolis, which operates
more than 100 cinemas across Europe and North America, its first
annual loss in over 13 years. 
    Duquenne said the group was keenly awaiting "The Batman"
starring Robert Pattison, with its Belgian release scheduled for
March, and the new "Avatar" film, expected close to the end of
the year.
    In the meantime, Kinepolis will continue efforts to reduce
costs to deal with the pandemic, the CEO said.
    "We adjust the staff planning for cleaning depending on the
expected occupancy of the theatre," he offered as one example of
everyday measures with no impact on the cleanliness of theatres
or customer satisfaction.
    Kinepolis reported earlier on Thursday a full-year loss of
25.5 million euros ($28.96 million) against analysts' average
estimate of 32.4 million. 
    It had 199.8 million euros in available funds at the end of
December.

($1 = 0.8804 euros)

 (Reporting by Olivier Sorgho in Gdansk; editing by Milla Nissi,
Kirsten Donovan)
 ((olivier.sorgho@tr.com))