BERLIN — Despite a 55% drop in profit to E800,000 ($1.01 million) and a 6% dip in sales to $72.5 million, German entertainment group Constantin Film on Thursday reported strong business in home entertainment, TV service productions and global sales in the first three months of the year.

Constantin reported a slight increase in its gross profit margin compared with the first quarter of 2004.

Home entertainment made up 38% of total sales, up 30% from last year; theatrical distribution accounted for 14%, commissioned productions 27% and TV sales 6%.

Company predicted new businesses, including license trading, inhouse exploitation of video and DVD rights and expanded TV service production, would boost coin in this fiscal year.

Constantin is forecasting full-year sales of $240 million and an operating profit, before interest and tax, of $11.4 million.

Its shares fell more than 1% Thursday to $11.12.

Meanwhile, Constantin’s parent company, Highlight Communications, posted an interim first-quarter profit figure of $4 million on sales of $99 million. The Swiss-based home entertainment group said the results had beaten initial forecasts.

Highlight shares rose 1.74% to $5.95.