SYDNEY — Australia’s Amalgamated Holdings announced Wednesday a A$70.4 million ($49.2 million) writedown on its German loop Kieft & Kieft and flagged a possible exit from its 50% interest in that territory’s Ufa circuit.
AHL, which owns Oz’s Greater Union chain, ascribed the writedown to the ailing German economy and a continuing decline in ticket sales.
Admissions through the end of April were off 8% on the same period last year. B.O. receipts declined by 14%.
The company said that it expects “any recovery will be slow” and it will take considerable time to improve trading conditions and attendance rates.
AHL bought the half of Kieft & Kieft it didn’t own from its local partners last December; its Cinestar circuit comprises 364 screens.
Via Kieft & Kieft, it owns half of the 187-screen Ufa circuit (Onex has the rest). Company is reviewing its participation in that joint venture and said its exposure in the event of exit would be around $5 million.