Premiere reports shrinking losses

Co. posted first-ever operating profit in 3Q

BERLIN — German pay TV platform Premiere continued to narrow its losses in the third quarter, with its net deficit down 70% to E25.4 million ($29.57 million), the company reported Monday.

Third-quarter revs were up 14% to $275 million, boosting Premiere’s nine-month revenue 22% to $823 million. However, losses for the first nine months were up $121 million, due partly to restructuring costs and writedowns on hidden assets once valued at $1.3 billion.

Company, which last week inked an output deal with Sony Pictures Television Intl., posted its first-ever operating profit (before tax, interest and writedowns) of $18.8 million in the third quarter, but writedowns of $32.6 million from devalued assets left the company with the net loss.

Premiere, formerly part of the now-defunct Kirch Group, was forced to revalue assets following its takeover in April by European investment firm Permira. As a result, it is now facing a $1.3 billion writeoff over 10 years. Company is thus writing off some $30 million per quarter, which will continue to dent its bottom line over the next decade.

Putting a positive spin on the results, Premiere topper Georg Kofler described the $30 million writeoff as “a balance sheet formality that has nothing to do with the operational business.”

Kofler added that the third-quarter figures had beaten expectations. The number of subscribers rose 13% to 2.76 million in the first nine months of the year and Premiere is expecting business to heat up during the Christmas season, which has traditionally seen a boost in subscriptions.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Biz News from Variety