Ad-hoc Press Release from Intertainment AG
Intertainment continues to record losses for 2003
Ongoing burdens due to the fraud perpetrated by Franchise Pictures
Ismaning, near Munich, September 20, 2004 – Media company Intertainment AG, Ismaning near Munich, has recorded earnings before interest and taxes (EBIT) amounting to -8.9 million euros for the fiscal year 2003, after -16.2 million euros in the previous year. The consolidated loss amounts to 14.1 million euros. In 2000, the loss was 16.1 million euros.
The burdens of the fraud perpetrated by US film producer Franchise Pictures and other parties, and the resulting consequences, are reflected in the financial statements, as in the previous year. Sales of Intertainment fell by 68 % to 6 million euros, after 19 million euros in the previous year. Sales generated by exploitation of the film “Twisted” were not achieved in 2003, they are recorded in the first six months of 2004.
Amortization of intangible assets and depreciation of property, plant & equipment amounts to 9.3 (2002: 0.5) million euros, depreciation of current assets amounted to 7.3 (2002: 0) million euros. The increase in these two items is mainly due to unscheduled write-downs required as a result of the comprehensive measures implemented for reorganization of American business activities. Earnings from ordinary activities fell in particular due to these expenses to -28.7 (2003: -13.7) million euros.
Intertainment posted positive unscheduled earnings amounting to 19.4 million euros on December 31, 2003. This is due in part to the valuation of claims for compensation against Franchise Pictures and other parties. The trial for damages won in June 2004 against Franchise improved the prospects of Intertainment obtaining damages for the fraud.
At the end of the fiscal year 2003, Intertainment had cash and cash equivalents amounting to 2.1 million euros following on from 3.9 million euros at the close of 2002. In future, Intertainment intends to continue pursuing intensively the assertion of its claims against Franchise and the other parties involved in the fraud.
End of the Press Release
Contact:
Intertainment AG, Investor Relations, Osterfeldstrasse 84, D-85737 Ismaning, Germany
Tel.: + 49 (0)89 21699-0, Fax: + 49 (0)89 21699-11
Internet: www.intertainment.de, E-mail: investor@intertainment.de