Ad-hoc Press Release from Intertainment AG
Intertainment significantly reduces loss in fiscal year 2002 and the first quarter of 2003
Ismaning near Munich, July 11, 2003 - Intertainment AG significantly improved its result in fiscal year 2002. However, the media company did not succeed in returning to profit. This was due to the ongoing negative effects of the fraud perpetrated on Intertainment by film supplier Franchise Pictures in 2000.
Overall, Intertainment posted a net consolidated loss of 16.1 million euros for the year compared with a loss of 86.8 million euros in the previous year. In line with expectations, Intertainment succeeded in substantially reducing the level of unscheduled expenses resulting from the fraud to 3.3 million euros compared with 142.4 million euros in fiscal year 2001. Earnings from ordinary activities amounted to -13.7 million euros (2001: -6 million euros). This figure includes unscheduled write-downs on film assets and provisions totaling 5.8 million euros.
Sales amounted to 19.0 (2001: 31.1) million euros. EBIT improved by 84.0 million euros to -16.2 (2001: -100.2) million euros. Earnings per share amounted to -1.37 (2001: -7.36) euros.
At December 31, 2002, Intertainment had cash and cash equivalents totaling 3.9 million euros compared with 14.2 million euros on December 31, 2001. The fall is due to high investments made by Intertainment in film projects.
During the first quarter of fiscal year 2003, Intertainment continued to reduce the loss. Although consolidated sales declined to 0.7 (first quarter 2002: 2.5) million euros, the group succeeded in bringing down the net loss for the quarter from -3.7 million euros to -2.8 million euros. Earnings from ordinary activities improved slightly to -2.5 (-2.6) million euros. At the close of the quarter, Intertainment posted cash and cash equivalents amounting to 3.8 million euros.
Intertainment is also anticipating restrained sales development during the second quarter. However, the management expects substantially higher proceeds for 2003 as a whole compared with 2002. This is because of the thriller "Blackout" produced jointly with Kopelson Entertainment and US Studio Paramount Pictures. Intertainment has successfully arranged pre-sales of numerous territorial rights in "Blackout". These pre-sales will impact on revenues when the film is screened during the second half of the year.
Intertainment AG, Dr. Marietta Birner, Investor Relations, Osterfeldstraße 84, 85737 Ismaning, Germany
Tel.: +49 (0) 89 / 216 99 - 0, Fax: +49 (0) 89 / 216 99 - 11,
Internet: www.intertainment.de , E-mail: email@example.com
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