HONG KONG — Hong Kong producer and distributor Universe Intl. Holdings on Monday announced net losses of $3.5 million for the financial year ending June 30 due to stagnating production and rising distribution costs.
Revenue for its video distribution business dropped 30% to $3.1 million, while its film exhibition interests showed a decline of 12% to $1.4 million.
The poor results were blamed on continuing contraction of the Hong Kong exhibition market and losses from Internet video piracy.
The bright spot was the rights licensing business in China where revenues grew 13% to $12.2 million, but group profit margins were affected by rising production costs.
UIH has had a turbulent year. In June, a proposed sale of its major shareholder, Goldcrest Enterprises, was called off because the parties could not agree on price and structure of the disposal.
Globalcrest, which owns 54% of UIH, is controlled by a trust whose beneficiaries include Universe chairman Daneil Lam and his wife Chiu Suet-ying, also a Universe exec director.
Hong Kong newspapers have reported widely that the proposed sale arose from a marital dispute between the pair.