Kinowelt Medien AG
Kinowelt Medien AG english
Kinowelt Media Group: Nine months figures
Ad-hoc-announcement transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
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Kinowelt Media Group: Restructuring measures have adverse affect on results in
first three quarters 2001 – acute risk of insolvency for Kinowelt Medien AG
Munich 29.11.2001: During the first nine months of 2001, turnover for the
Kinowelt Media Group was 168.4 million euro – 20 per cent lower than for the
corresponding period last year. During the third quarter, Kinowelt achieved a
turnover of 49.8 million euro 40.4 per cent less than for the corresponding
quarter last year. This decline was largely a result of continued difficulties
with sales of television licences – with turnover well down on last year – and a
lack of revenue from the merchandising segment resulting from deconsolidation
of Brameier from 1st April 2001.
EBIT for the first nine months was affected by the creation of prudential
reserves and by losses related to special measures aimed at slimming down the
Kinowelt Media Group. The result was that further burdens were added in the
third quarter to the losses of 160 million euro already recorded in the six-
monthly report. The main factor involved was termination of the agreement with
Warner Bros. which caused a three-figure million burden. EBIT at the end of nine
months was therefore -272.2 million euro. During the corresponding period in
2000, the Kinowelt Media Group achieved EBIT of 28.3 million euro.
The financial result after nine months was -35.7 million euro. In addition to
interest payments, this included declining-balance depreciation of the company’s
shares in e.multi Digitale Dienste AG and media netCom AG.
Net losses amounted to -309.1 million euro or -12.63 euro per share.
As a result of the considerable adjustments, disinvestments, and cancellation of
the Warner agreement, the balance sheet total on 30th September 2001 reduced by
579.8 million euro to 704.9 million euro compared with 31st December 2000. The
balance sheet value of film stock was reduced as a result of termination of the
Warner agreement by 240.4 million euro to 374.8 million euro. Equity capital was
reduced as a result of the losses during the first nine months from 340.9
million euro to 31.9 million euro.
end of ad-hoc-announcement (c)DGAP 29.11.2001
Issuer’s information/explanatory remarks concerning this ad-hoc-announcement:
Complete press release:
Kinowelt Media Group: Restructuring measures have adverse affect on results in
first three quarters 2001 – acute risk of insolvency for Kinowelt Medien AG
Munich 29.11.2001: 2001 has brought radical change. The Kinowelt Media Group
must adapt its business to prevailing market conditions. Since no licence deals
with private TV stations can be expected in the foreseeable future, Kinowelt has
given back its extensive acquisitions to Warner Bros, thereby considerably
reducing its liquidity requirements for the future. On the other hand, the loss
of these film rights has resulted in a considerable non cash-burning three-
figure million burden. The positive effects of rigorous cost reduction,
including in the personnel area, will be reflected in the fourth quarter
figures. Currently Kinowelt Media Group is generating operative surpluses before
interest, depreciation and debt repayment.
Nevertheless, the survival of the Kinowelt Medien AG is not secured. Kinowelt
remains heavily burdened by its high indebtedness. The risk of insolvency is
still acute, particularly since one of the creditor banks set 28th November 2001
as the deadline for repayment of its loans. In this situation Kinowelt Medien
AG can only survive with the support of its creditor banks.
During the first nine months of 2001, turnover for the Kinowelt Media Group was
168.4 million euro – 20 per cent lower than for the corresponding period last
year. During the third quarter, Kinowelt achieved a turnover of 49.8 million
euro 40.4 per cent less than for the corresponding quarter last year. This
decline was largely a result of continued difficulties with sales of television
licences – with turnover well down on last year – and a lack of revenue from the
merchandising segment resulting from deconsolidation of Brameier from 1st April
2001.
EBIT for the first nine months was affected by the creation of prudential
reserves and by losses related to special measures aimed at slimming down the
Kinowelt Media Group. The result was that further burdens were added in the
third quarter to the losses of 160 million euro already recorded in the six-
monthly report. The main factor involved was termination of the agreement with
Warner Bros. which caused a three-figure million burden. EBIT at the end of nine
months was therefore -272.2 million euro. During the corresponding period in
2000, the Kinowelt Media Group achieved EBIT of 28.3 million euro.
The financial result after nine months was -35.7 million euro. In addition to
interest payments, this included declining-balance depreciation of the company’s
shares in e.multi Digitale Dienste AG and media netCom AG.
Net losses amounted to -309.1 million euro or -12.63 euro per share.
As a result of the considerable adjustments, disinvestments, and cancellation of
the Warner agreement, the balance sheet total on 30th September 2001 reduced by
579.8 million euro to 704.9 million euro compared with 31st December 2000. The
balance sheet value of film stock was reduced as a result of termination of the
Warner agreement by 240.4 million euro to 374.8 million euro. Equity capital was
reduced as a result of the losses during the first nine months from 340.9
million euro to 31.9 million euro.
Business continued to develop dynamically for the “Home Entertainment” division.
Turnover increased during the first nine months of the year by 54.3 per cent to
55.1 million euro. EBIT was more than doubled in the first nine months of the
year from 5 million euro to 12.4 million euro.
So far this year it has not been possible to realise significant sales of TV
licences. The “Licence Dealing” division achieved a turnover of 19.2 million
euro 74 per cent less than the previous year. EBIT for this division was -38.5
million euro.
In the “Cinema” division (cinema operations and theatrical distribution)
turnover for the first nine months of 2001 was 17.5 per cent higher than the
previous year, at 63.1 million euro. This increase was the result of
consolidation in cinema operations. Results for theatrical distribution were
considerably lower than last year. The division’s EBIT for the first nine months
was -9.9 million euro. In cinema operations the third quarter saw significant
increases in both turnover and earnings. This positive trend is being continued
into the fourth quarter.
The “In-flight Entertainment” division has succeeded in increasing turnover for
the first nine months of the year by 25.2 per cent to 20.4 million euro.
The nine-monthly report III/01 is available on the Internet at
www.kinowelt-medien-ag.de.
Enquiries to Kinowelt Medien AG:
Christin Wegener Jörg Lang
SVP Corporate Communications SVP Investor Relations
Tel.: +49-89-30 796 7270 Tel.: +49-89-30 796 8103
Fax: +49-89-30 796 7330 Fax: +49-89-30 796 7330
e-mail: presse@kinowelt.de e-mail: IR@kinowelt.de
www.kinowelt-medien-ag.de www.kinowelt-medien-ag.de
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WKN: 628590; Index:
Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf,
Hamburg, Hannover, München, Stuttgart
292137 Nov 01
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