TOKYO — Japanese Broadband giant Usen, which owns movie distributor Gaga Communications and runs the pioneering GyaO Internet platform, is forecasting a massive loss of $557 million.
Company said that for the current quarter to end of August revenues would fall from Yen 295 billion ($2.78 billion) to $2.69 billion.
In April, group decided to withdraw Gaga from movie acquisitions and financing following a string of B.O. flops. Having now evaluated Gaga’s assets including the pic library, Usen wrote off $51 million from its books.
In a statement, Usen said that it was “drastically reducing its risk in acquiring and producing contents, while concentrating corporate resource on the media platform business.”
Usen also recorded a loss of $24.5 million on its own contents, while forecasting further contents-related losses of $18.8 million.
The biggest single hit to the bottom line – a huge $351 million — came from Usen’s decision, announced on July 2, to turn staffing firm Intelligence into a wholly owned subsidiary via a stock swap, with the accompanying costs of goodwill amortization. Usen currently owns a 38% stake in the company.