Boxoffice-November.2001

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INTERNATIONAL NEWS BRIEFS
PACIFIC OVERTURES
Notes From the Pacific Rim by Francesca Dinglasan
LEAD STORY: FORCE-FUL LOSSES
WELLINGTON—New Zealand entertainment conglomerate
Force Corp. has reported a whopping NZ$47 million (US$20.2
million) in red ink for the fiscal year. The company attributes the
loss to a NZ$39 million (US$16.8 million) writeoff related to the
company's exhibition investment in Argentina, which Force Corp.
says suffered from a lack of quality films in release during the 12-
month period. Earnings for Village Cinemas SA, Force Corps
joint venture in the South American territory, totaledNZ$28.2
million (US$12.2 million) before interest, depreciation and taxes, a
29 percent drop compared with the previous year. Total operating
revenue during the timeframe was reported at NZ$53.4 million
(US$23 million), with full-year earnings before depreciation, interest,
taxes and writedowns equaling NZ$1.5 million (US$64,500).
FISCAL END AT VILLAGE
SYDNEY—Oz-based film conglomerate Village Roadshow
has unveiled its financial for the fiscal year ending last June, indicating
a disappointing 27 percent drop in net profit to AUS$55.1
million (US$28.5 million). Accounting for part of the downturn
is the first-time red ink recorded by the company's exhibition sector,
which reported a loss of AUS$13.5 million (US$7 million),
compared with earnings of AUS$15.5 million (US$8 million) a
year ago. Village has been actively divesting itself of theatre holdings
in a number of foreign territories, which have included
France, Germany, Hungary and Switzerland over the past year,
with industry watchers singling out Austria and Malaysia as the
next markets to be exited by the company. "Plain and simple, the
tough environment for cinema has continued, and we recorded
our first-ever loss in this division," notes Village Roadshow managing
director Graham Burke. And though the Aussie firm, which
currently holds exhibition interests in 15 territories, ultimately
aims to scale back its presence to 10 markets. Village is ambitiously
planning to open 232 new screens during the upcoming
fiscal year, with key sites being constructed throughout the U.K.,
Italy, South Korea and Taiwan.
READING UNVEILS FINANCIALS
FOR SECOND QUARTER/FIRST HALF
SYDNEY U.S.-based exhibition company Reading Entertainment,
which operates theatre circuits in the Australian and
New Zealand markets, has announced its second-quarter and
first-half results for the period ending last June 30. Revenue
totaled just under $9 million for the three-month period and $19.3
million for the six-month period, down 18.3 percent and 12.8 percent,
respectively, with second-quarter loss widening by 62.3 percent
to $2.8 million and half-yearly red ink equaling $5.3 million,
compared with first-half 2000's $5 million. Reading cites its recent
disposal of certain American sites lor driving the revenue downturn,
noting that the "decline was partially offset by an increase in
revenue from the company's Australian cinema operation." which
recorded earnings of S5.4 million in the second quarter, in comparison
to the previous year's $4.9 million. Reading adds that its
Australian screen count grew from 84 in 2000 to 106 screens this
year. The company, which also operates theatres in Puerto Rico,
had announced last yeai that it planned to concentrate its efforts
ENTERTAINMENT TAX REGULATIONS
INFURIATE INDIAN EXHIBS
BOMBAY—The Indian state of Maharashtra has passed a
ruling effectively exempting local multiplexes from a punitive
entertainment tax over the next three years, making the territory
an attractive site for international theatre operators looking
to expand. The government's decision, however, has not fared
well with many local independent theatre owners, since singlescreen
venues are still expected to pay a 60 percent tax. Indiabased
trade organizations the Theatre Owners Association and
Cinematograph Exhibitors Association have publicly criticized
the ruling as discriminatory, with an estimated 70 single-screen
cinemas shutting down in a one-day protest last September.
Theatre operators are expected to enter into discussions with
Maharashtra chief minister Vilasrao Deshmukh over the matter.
MALAYSIAN ENTERTAINMENT COMPLEX GOES ECO
Kl'ALA LUMPUR—A doomed entertainment project that
had been put on hold due to an inability to raise enough capital
for completion has been brought back to life with the help of
entrepreneur Syed Mokhtar. Entertainment Village Sdn Bhd had
managed the construction of six out of eight soundstages to be
part of a Malaysian complex dubbed E-Village, comprising a
theme park, movie studios and associated facilities. Further development
of the site had to be temporarily halted as Entertainment
Village, which industry observers believe accrued $14 million in
debt to creditors, tried unsuccessfully to secure additional funding.
Replacement developer Mokhtar is currently involved in taking
over for Entertainment Village, and the mogul is expected to
rename the project Eco-Media City.
ON THE MOVE
The newly established distribution arm of Australian exhibition
giant Hoyts Cinemas is expected to name Richard Sheffield as
its new executive in charge of international acquisitions. However,
both Hoyts and Sheffield, who currently works at Oz-based REP
Film Distribution, have yet to confirm the appointment... UIP
Korea has announced the appointment of Douglas Lee as its new
general manager. Lee, who formerly served as the company's marketing
director of Asian operations, replaces H.G. Lee, who is
retiring from the business... Hong Kong-based Media Asia has
revealed that current managing director Thomas Chung w ill take
the post of executive director.
PACIFIC RIMSH0TS
AC Nielsen Media International reveals that it expects advertising
spending throughout the Pacific Rim to take a downturn, if half-yearly
figures are anj indication. In the New Zealand market, for example,
ad spending grew bj just one percent during the first half of the year
compared with a 9.1 percent uptick a year ago. Of the NZ$822 million
(I IS$^2 ( ) million) spent during the six-month period, just NZ$4
million (I
:
.(> million) went to the Kiwi cinema sector... Box-office
figures lor Thai production "Suriyothai" reached an unprecedented
1 10 million bahl ( USS2.2 million) in the pic's domestic market over its
opening weekend, toppling the previous record of 43.7 million bahl
(US$874,000) previously held by "Star Wars: Episode I The
Phantom Menace." The period drama about the country's fabled 16th
century Queen Suriyothai carried a $9 million budget, making it
most expensive film to conic out of the local film industry.
the
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