Luc Besson’s EuropaCorp has posted a loss of $83 million (€70.6 million) for the first half of its 2017-2018 financial year. The loss figure is nearly three times higher than it was during the same period of the last financial year – which culminated in record losses of $135 million.
EuropaCorp primarily blamed the results on the poor theatrical performance of movies it distributed in the U.S., notably “The Circle” and “Their Finest,” as well as the “disappointing U.S. box-office revenues for sci-fi epic “Valerian and the City of a Thousand Planets,” said the report.
Directed by Besson with a budget in the range of $180 million, “Valerian” tanked in the U.S., grossing only $40.5 million. It went on to gross $225.16 million worldwide. The movie nevertheless yielded strong international sales business that allowed the company to boost its revenues by 77.5% to €138.1 million.
EuropaCorp said it had already reduced its overhead costs by 13% and will be making more cuts, although no major layoff plan has been announced. The company ousted its deputy CEO Edouard de Vesinne in September and recently sold its French TV division.
Several high-level execs have also stepped down from the company, most notably EuropaCorp CEO Marc Shmuger, who had been hired in 2016 on a renewable six-month contract that was last extended in June, and most recently deputy head of sales Andreï Kamarowsky, who resigned from the company to take a job at Orange Studio.
EuropaCorp is now under the full leadership of Besson, who is currently making a new movie, “Anna,” an action thriller starring Helen Mirren and Luke Evans.
EuropaCorp, whose stock value has collapsed by 74% since last June to 1.10 euro per share as of today (Dec.15), also said it was looking to continue strengthening its financial capacities.
The company is actively seeking to raise capital and is rumored to be up for sale.