BERLIN — Citing further depreciation of film rights and writedowns on its shares in fellow Teutonic producer Internationalmedia, Splendid Medien last week posted a net loss of 59.6 million euros ($67.4 million) on revenues of $39 million.
The belated annual report was postponed due to company’s divestment of its U.S. production arm Splendid Pictures, which is to be brought into the Central Organisation of Technology (COT), a holding set up by Northstar Finance, as “a non-cash capital contribution.”
Splendid said it was forced to divest itself of its 80% share in the division “due to the currently difficult market environment surrounding the financing of U.S. film projects and the high demand for liquidity as well as the difficulty in assessing the projects and implementation of international sales.” Move remains subject to approval at its annual general meeting of shareholders but signals an end to the weakened company’s commitment Stateside. Splendid Pictures was set up last year with David Glasser’s Cutting Edge, which holds a 20% stake.
Massive price drops of Internationalmedia shares last year cost Splendid $7.2 million. Company obtained Internationalmedia stock in 2001 when it sold its 49% stake in Initial Entertainment Group. Since then Internationalmedia shares have plunged nearly 92% to $1.86.
The release of Splendid’s annual report on July 17 followed the abrupt exit of finance chief Thomas Weber from Splendid’s managing board July 14. Splendid declined to comment on Weber’s departure.