Bottom line brought down by devaluation of assets
BERLIN — German film distrib Intertainment on Monday posted a continuing loss for 2003, due to the “burdens of the fraud perpetrated by U.S. film producer Franchise Pictures and other parties.”
Intertainment recorded a net loss of E14.1 million ($17.2 million) last year, down from a $19.6 million deficit the previous year.
Revenue fell by 68% to $7.3 million after $23 million in 2002. Sales generated by Philip Kaufman’s “Twisted” were recorded in the first six months of 2004 and not included in last year’s figures.
Pic was the only film produced under a $500 million production pact between Kopelson Entertainment and Intertainment, inked in 2000 when Intertainment was still flush with Neuer Markt coin. The companies agreed to end the agreement in February.
Intertainment’s bottom line was also dented by $20.2 million in writedowns from the devaluation of assets, which pushed pre-tax operating losses to $35 million.
In June, Intertainment won its case against Franchise and its CEO Elie Samaha in a U.S. federal court. The once high-flying distributor claimed it had been defrauded into paying wildly inflated budgets on films including “Get Carter” and “The Whole Nine Yards.”
The jury awarded Intertainment $106 million in compensatory and punitive damages.