The Belgian cinema group recently disclosed a promising financial report showcasing an impressive turnover and profit growth. The report is particularly noteworthy, considering the adverse effects of the corona pandemic that led to widespread cinema closures and other restrictive measures. The group has apparently managed to bounce back from these challenges and is now in a healthy financial position.
However, the recovery in terms of visitor numbers is progressing at a slower pace. In 2023, the cinema group welcomed 35.4 million visitors worldwide across its 108 cinemas with 1,131 screens. Although this represents an increase of more than a fifth within a year, it still falls short of the 40.3 million visitors recorded in 2019 across 110 cinemas with 1,079 screens.
Hollywood
The slower recovery in visitor numbers is partially attributed to Hollywood not yet operating at full capacity. As Duquenne explained, the group currently has approximately three-quarters of the supply it traditionally had. The pandemic has caused significant delays in Hollywood, leading to a slow green-lighting process for several films and a subsequent bottleneck in assembly capacities.
As a solution, major studios decided to spread out the release of their new films over several years. This strategy was further compounded by months of strikes by screenwriters and actors in Hollywood which inevitably delayed film production and release schedules. Duquenne cited the postponement of the science fiction film ‘Dune: Part Two’ from November to March as an example of these delays.
Repair
Duquenne believes that once Hollywood resumes full operations, visitor numbers would naturally rebound. Looking ahead, he anticipates more content to be available in 2025 and 2026. This, he claims, would be a boon for the group as it would supplement the positive results they are already experiencing.
Emerging Hollywood players, Apple and Amazon, are also expected to make a significant impact. Both companies have announced plans to invest $1 billion each year in theatrical films. To put this into perspective, Duquenne pointed out that a James Bond film costs about 250 million dollars, so this would be the equivalent of funding eight such films.
