COLOGNE — German entertainment group Internationalmedia ended 2003 in the red and said it will not return to operating profit this year.
Munich-based group announced Monday that it is expecting a net loss of E94 million ($112 million) for 2003, after a loss of $126 million in 2002.
Result stems largely from the sale of Initial Entertainment Group (IEG) to its toppers Graham King and Colin Cotter.
Company noted that liquidity remained critical and that it has signed up for an $18 million loan with a U.S. investor group it declined to name. Loan will provide interim financing on pre-production for upcoming films, it said.
Writeoffs on development costs for projects started since 2001 and the tense situation on the international pre-sales market will prevent Internationalmedia from recording an operating profit this year, it said. Company’s current license portfolio includes “Terminator 3,” “The Wedding Planner” and “K-19: The Widowmaker.”
From IEG, Internationalmedia has retained film rights worth around $4 million, plus overages from “Traffic,” “Gangs of New York,” “Ali” and “The Aviator.”