VANCOUVER — Rainmaker Entertainment Group has reported a loss of C$8.7 million ($5.9 million) for fiscal 1999 after shedding its money-losing operations.
The Canuck film and television post-prod house, formerly known as Gastown Prods., increased consolidated revenues to $16.7 million for the year ended Dec. 31 — a rise of 4.4% over 1998 revenue of $16 million, but insufficient to offset losses from its non-core ops.
Some ops dropped
Rainmaker sold its Vancouver production subsid Pacific Motion Pictures at year’s end to Matthew O’Connor and Tom Rowe, two former principals, and has shut down or disposed of all operations of Rainmaker Digital in Burbank except the new-media (DVD) business. Disposal of the two units led to a loss of $7.35 million.
“Our Vancouver operations are profitable, and are capable of generating a strong cash flow, now that we have removed all the distractions from our core business,” company spokesman Malcolm Earle told Daily Variety.
Rainmaker recently added 12,000 square feet of studio space in downtown Vancouver as part of a major upgrade, and it is the first Western Canadian post-prod facility to offer complete HDTV services.
Company also announced that it had elected two new members to its board, Hugh McKinnon, VP of Telemedia Radio (West) and investment banker James Bruce, managing director of TD Securities.