HONG KONG — Hong Kong film and TV conglom Mei Ah Entertainment swung to losses of HK$83.5 million ($10.7 million) in the year to March from a profit of $2.8 million a year earlier.
Much of the damage was done by a revaluation of convertible loan notes. Revenue fell 25% to $13.2 million and net profit after exceptional items was down to $380,000 from $2.2 million.
Although Mei Ah is an investor in helmer John Woo’s “Red Cliff,” the most expensive Asian film ever, it described the market for Hong Kong movies as “relatively stagnant” while piracy is eating into its video business.
With Mei Ah having cut its interest in production company Big Media, Mei Ah’s film exhibition and licensing businesses saw combined revenues more than halved from $6.35 million to $2.97 million. Company is putting a growing emphasis on TV; it now operates three channels in Hong Kong and one in Singapore. Revenues increased from $7.54 million to $8.23 million.