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INTERNATIONAL NEWS BRIEFS<br />
EUROVIEWS<br />
European News Notes by Francesca Dinglasan<br />
LEAD STORY:<br />
KINOWELT HEADS TOWARDS BANKRUPTCY<br />
BERLIN—Industry insiders are speculating that German<br />
film distribution and exhibition giant Kinowelt is moving closer<br />
toward declaring bankruptcy. Plagued by disappointing<br />
half-yearly financials. including a loss of 196 million euros<br />
(US$176.4 million) and net income totaling negative 194 million<br />
euros (USS 174.6 million), the company recently unveiled<br />
its intent to sell off its exhibition interests. During the first six<br />
months of this year, Kinowelt's cinema division saw operating<br />
losses increase by 600.000 euros (US$540,000) over the same<br />
timeframe a year ago to 5.2 million euros (US$4.7 million),<br />
despite a significant boost from its acquisition of seven theatres<br />
from Australia-based Hoyts Cinemas. Kinowelt co-CEOs<br />
Rainer and Michael Koelmel have acknowledged in<br />
a public<br />
statement that the conglomerate "can operate successfully in<br />
slimmed-down from," but also note that "the survival of the<br />
company is not assured."<br />
MEDIA SALLES REPORTS<br />
ADMISSIONS DOWNTURN IN EASTERN EUROPE<br />
LONDON—EU media group Media Salles' latest research<br />
reveals that while cinema admissions are steadily climbing in<br />
Western Europe, theatre operators on the eastern half of the continent<br />
will continue to see ticket sales head southward. According<br />
to the report, 12 eastern territories saw a combined decrease of<br />
5.7 percent in admissions during the 1999-2000 period, with<br />
Poland experiencing the worse downturn at just below 30 percent.<br />
Other theatres seeing notable drops in ticket sales during the timeframe<br />
include Yugoslavia, Bulgaria, Slovakia and Poland.<br />
European exhibitors in the West, however, witnessed a much<br />
rosier 12-month period than their eastern neighbors. Admissions<br />
in France shot up by just over eight percent to 12 million compared<br />
with the previous year, while Spain recorded a gain of 3.1<br />
percent to four million turnstile turns during the timeframe. Also<br />
enjoying increases in ticket sales were Belgium, at 6.3 percent;<br />
Sweden, with 6.2 percent; Germany, which saw a 2.4 percent<br />
uptick: and Italy, which recorded a two percent rise.<br />
EASTERN EUROPE TICKET SALES ON THE RISE,<br />
ACCORDING TO D0D0NA<br />
LONDON—Contrary to Media Salles' take on Eastern<br />
European box-office figures, global exhibition industry analyst<br />
Dodona Research reports that admissions at movie theatres<br />
throughout the region are actually on the rise. According to the<br />
l.K -based linn's latest findings, though the majority of worldwide<br />
markets are suffering from lackluster ticket sales, seven ol<br />
the 10 territories covered in the report including Bulgaria,<br />
Croatia, the Czech Republic. Hungary. Poland. Romania. Russia,<br />
Serbia. Slovakia and Slovenia are experiencing an upswing in<br />
turnstile turns, buoyed by a proliferation of multiplex openings<br />
Among the exhibition chains bowing new cinemas in areas previously<br />
without modern movie complexes are South Vfrica based<br />
Stcr Kinekor's European arm. Ster Century, which opened an<br />
eight-screenei in Slovakia, and Slovakian multiplex operatoi<br />
l.jubljanski Kmematografi. which recently built a 12-plex in its<br />
native territory Other countries expected to see then first multiplexes<br />
within the next couple of years are<br />
Bulgaria and Serbia<br />
"In contrast to some of the disappointments elsewhere, we have<br />
found ourselves upgrading some of our forecasts for this region."<br />
notes Katharine Wright, author of Dodona report. "Cinemagoing<br />
Central and Eastern Europe." Total screens in the 10 territories<br />
reached 5,023 in<br />
2000, according to Wright's research.<br />
BOX OFFICE BOOMS IN FRANCE<br />
PARIS—French film industry association Centre National de la<br />
Cinematographic reports that 2001 is shaping up to be a banner<br />
year for the domestic box office. According to the latest figures<br />
gathered by the CNC, ticket sales in the Gallic territory are estimated<br />
to have hit 122 million so far this year, increasing by just under<br />
10 percent compared with the same timeframe a year ago. Also on<br />
the rise is the market share held by local pics, which took a 42.5 percent<br />
of the pie from January to August, compared with a 31.2 percent<br />
share during the first eight months of 2000. At the same time.<br />
Hollywood product is taking a slide at French cinemas, tumbling<br />
from last year's 60.8 percent market share to the current 48.9 percent.<br />
The summer was especially busy at cincplexes throughout<br />
France: July turnstile turns rose by 16.2 percent over last year's figures,<br />
while August saw admissions climb by 15.6 percent.<br />
PARADISE NOT LOST IN RUSSIA<br />
MOSCOW— Russian film distributor Paradise Productions<br />
has announced plans to open a multimillion-dollar modern cineplex<br />
outside of Moscow. Slated for a fall bow. the new multtscreener<br />
brings the company's domestic screen count to 13.<br />
Although miniscule compared with exhibitor holdings in other<br />
territories,<br />
the figure catapults Paradise into the position of the<br />
country's largest theatre operator. The distributor, which specializes<br />
in rolling out independent product, also recently opened a<br />
new single-screener in the Russian city of Vyborg, with another<br />
CINEMARK AND UCI JOIN FORCES IN NORTHAMPTON<br />
NORTHAMPTON, U.K.—Piano. Texas-based Cinemark<br />
International subsidiary Cinemark Theatres UK has reached a<br />
deal with international exhibitor UCI to oversee operations of a<br />
new cineplex in Northampton. Dubbed the Sol Central, the 10-<br />
screener will anchor an entertainment and retail complex, which<br />
will also hold several restaurants and retail shops as well as a hotel<br />
and modern gym. Amenities to be featured in the 10-plex include<br />
all-stadium auditoriums, wall-to-wall screens and box offices<br />
equipped with computerized ticketing. "We have always believed<br />
in the potential of the Northampton site." notes Cinemark<br />
International president Tim Warner "This management agreement<br />
allows us to combine a premium project with premiere international<br />
cinema operators." I CI senioi VP Steve Knibbs adds,<br />
"UCI is extremely evened about the opportunity to combine two<br />
industry<br />
leaders m tins project<br />
CINEMAXX NAMES NEW EXEC<br />
COLOGNE, GERMAN\ re tic exhibition circuit<br />
Cinemaxx has appointed Hartmul Scheunemann as us new<br />
(it) Scheunemann, who most recently served as a finance executive<br />
at German Internet company Spiegelnet, replaces Marius<br />
Schw.il/. who left Cinemaxx shortly aftei the company posted<br />
us dismal financials foi first-hall 2001, including red ink ol<br />
DM52 1 million il S$24 million)<br />
November. 2(MM
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