‘Transcendence’ blamed for film sector weakness
HONG KONG – Village Roadshow, the Australian film exhibition and theme parks group, warned that profits in the current year would be hit by weakness in its film division.
“As a result of the generally disappointing box office performance of ‘Transcendence’ and resulting approximately $2 million minimum guarantee write off, the Film Distribution division forecast results for FY2014 will not achieve earlier expectations. While the rest of the Film Distribution business and VRL’s other businesses remain robust, this write off, assuming no cash dividend from VREG, will mean that VRL’s 2014 NPAT is now likely to be in line with or slightly below FY2013 net profit after tax,” it said in a statement.
Last year the group announced net profits of A$57.2 million (US$53.2 million).
However, the company this week announced a A$0.15 per share special dividend and said that it might consider another special dividend later in the year.