Exhib unit Cinemaxx's losses hurt
BERLIN — German film group Senator Entertainment saw a 72% increase in revenues for fiscal year 2000 to DM 211 million ($96 million), but the company’s net profits for 2000 were $1 million, slashed from the previous year’s $4.9 million.
Senator holds a 25% stake in German exhib Cinemaxx, which saw a sharp drop in admissions last year, resulting in roughly $12 million in losses for Senator.
Restructuring at Cinemaxx as well as front-end costs for the exhib’s nine new multiplexes in Germany, Denmark and Turkey drove up costs last year. But Senator topper Hanno Huth predicted Cinemaxx would be in better shape this year, adding that the company would keep its stake in the exhib.
International Dutch bank ABM Amro advised shareholders to hold their Senator stock following the release of its annual business report.
Senator says it’s rolling out a higher number of films from acquisitions, co-productions and cooperative deals this year, including “Tomcats” and “Enigma,” and is expecting higher revenue figures for 2001.