BERLIN — Internationalmedia, owner of L.A.-headquartered Intermedia, has revised its full-year business forecast for 2002 following the poor performance of “K-19: The Widowmaker.”
The German film group confirmed it will not reach its projected annual operating profit of €15 million-€19 million ($14.8 million-$18.7 million) and lowered initial target revenues of $325 million-$364 million down to $265 million-$285 million.
“K-19’s” lackluster box office take in the U.S. has reduced the company’s income projections by around $10 million. Domestically, the Paramount release has grossed $34.3 million to date.
Internationally, pic has grossed $2.2 million to date from the three territories where it is in release — Thailand, Taiwan and Hong Kong.
Internationalmedia’s share price Friday dropped 25% to a year low of 98¢ following the news, before stabilizing at around $1.08.
The Neuer Markt-listed firm said further factors behind the forecast revision included the current state of the global economic environment, which has led to lower film and financing fees, as well as fluctuations in exchange rates between the dollar and euro.
In addition to the loss of $10 million from projected revenues due to “K-19’s” poor B.O., current financing fees are $20 million below initial expectations, with profit from film licensing fees running $6 million behind forecast.
Film development costs are expected to increase by $8 million-$10 million against initial projections.
With Internationalmedia’s five remaining 2002 releases pre-financed through minimum guarantees, company is expecting revenue from the pics to proceed according to plan.
Internationalmedia has a cash position of $62 million, which it says ensures liquidity through 2003, regardless of the weak business environment.
In August, company posted half-year net losses of $17.4 million and revenues of $91 million.
In addition to Intermedia, Internationalmedia owns L.A. subsids Initial Entertainment Group, Pacifica Film Distribution and Pacifica Film Development.