BERLIN — German film group Internationalmedia unveiled a cost-cutting plan Monday it hopes will whip it into shape, just a week after slashing its revenue forecast and downsizing its management board.
The board, now manned only by chairman Moritz Borman and finance chief Andreas Konle, is predicting revenue of between E330 million and E350 million ($332.7 million and $353 million) next year, compared with the $255 million it’s expecting for 2002.
Company plans to ax more than 30% of its nearly 100 employees worldwide next year to save some $11 million. It will also end producer alliances, specifically about nine first-look deals, when existing contracts expire in 2004, saving nearly $18 million.
Internationalmedia’s revenue forecast for 2003 is based on estimated box office from upcoming releases, including Arnold Schwarzengger’s “Terminator 3” and “Basic” with John Travolta.
The majority of company’s 2003 revenue will be generated by minimum guarantees. In addition, Internationalmedia is anticipating continuing overages from “Traffic” and “Wedding Planner,” as well as increased revenue from titles of the Largo Entertainment library acquired last year.