Kinowelt Medien AG
Kinowelt Medien AG english
Ad-hoc-announcement transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
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Kinowelt Media Group: accounting adjustments result in high special depreciation
allowances
Munich, 31.08.2001: During the first six months of 2001, the Kinowelt Media
Group had only limited success in achieving the goals set. While “Home
Entertainment” and “Inflight Entertainment” recorded satisfactory results, the
“Licence Dealing” and “Cinema” business units fell considerably short of their
planned objectives.
At 118.6 million euro, Group turnover during the first six months of 2001 was
6.2 percent lower than in the corresponding period last year. The main reason
was the deconsolidation of Brameier on 01.04.01 and the fact that a major TV
licence sale was not included in the figures because delivery took place after
the end of the period to which the six-monthly report refers (to 30.06.01).
The Executive Board of Kinowelt Medien AG is using the present consolidation
phase to achieve a radical streamlining of the Group. The entire portfolio has
been analysed in depth during the second quarter of 2001 and necessary
restructuring carried out. Merchandising, cinema operations and holdings have
been comprehensively freed of risks through depreciation on book values,
valuation adjustments on loans, and provisions.
One-off burdens included in the six-monthly figures for 2001 amount to a total
of 160 million euro. By far the biggest element is accounted for by the
insolvency of Brameier Fanworld AG. Provisions related to Brameier amounting to
some 50 million euro had a negative impact on profits. In addition to risk
provisions for holdings and restructuring costs, goodwill write-down on cinema
operations amounting to 25 million euro also had a negative impact on the
overall results. The balance sheet total as of 30.06.01 was reduced by 312.7
million euro to 972 million euro compared with 31.12.00.
EBIT for the first six months of 2001, including all burdens, was -161.9 million
euro. Because of an increased burden of interest and writedown of financial
assets, the financial result was down 29.4 million euro at -34.2 million euro.
The pre-tax result was -196.1 million euro and the net income to the end of the
first six months of 2001 was -193.5 million euro.
end of ad-hoc-announcement (c)DGAP 31.08.2001
Issuer’s information/explanatory remarks concerning this ad-hoc-announcement:
As a result of the various burdens resulting from writedowns and provisions,
Kinowelt will not achieve a positive EBIT in 2001. However the Executive Board
is confident that, provided there can be successful financing of its activities,
the Group will achieve a positive operating result in the second half of 2001.
Business continued to develop dynamically for the “Home Entertainment” business
unit. Turnover in the first six months was 48 percent up over the corresponding
period last year at 33 million euro. During the same period the operating result
almost doubled from 3.1 million euro to 5.7 million euro.
The “Licence Dealing” business unit achieved a major TV sale during the second
quarter of the year. However, as the material is only due for delivery probably
in the third quarter, turnover from the deal could not be included in the
figures for the second quarter. For that reason, turnover for this business
unit, at 17.9 million euro, was 62 percent less than in the same period 2000.
The operating result was -18.3 million euro, but this also includes the impact
of a rising dollar exchange rate up to 30.06.01.
In the “Cinema” business sector (theatrical distribution and cinema operations),
turnover rose 43 percent to 44.3 million euro as a result of consolidation of
cinema operations. The result for the unit, at -5.2 million euro was
significantly lower than the previous year. The Kinowelt Executive Board is
particularly disappointed with the performance of the company’s cinemas, and
plans to sell them.
The “Inflight Entertainment” business unit increased turnover by 32 percent. The
EBIT margin was more than 10 percent.
The Executive Board is convinced that the Kinowelt Media Group can operate
successfully in slimmed-down form. However the process of restructuring its
activities must be accompanied by the banks if it is to be implemented
successfully. At present Kinowelt is working with the banks on a strategic
restructuring plan for the company. The liquidity of Kinowelt Medien AG has to
be radically improved.The entire management team is devoting its full energies
to achieving a rapid improvement in the operative efficiency and the economic
situation of the company.
The six-monthly report for II/01 is available on the Internet at
http://www.kinowelt-medien-ag.de
Enquiries to Kinowelt Medien AG:
Christin Wegener Jörg Lang
SVP Corporate Communication SVP Investor Relations
Tel.: + 49 89 – 30 796 7270 Tel.: + 49 89 – 30 796 8104
Fax: + 49 89 – 30 796 7330 Fax: + 49 89 – 30 796 7330
e-mail: presse@kinowelt.de e-mail: IR@kinowelt.de
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WKN: 628590; Index: NEMAX 50
Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf,
Hamburg, Hannover, München, Stuttgart
312042 Aug 01
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