ots Ad hoc-Service: CinemaxX AG <DE0005085708> Cinema market leader CinemaxX adopts exceptional measures following poor audience totals in 2000
Hamburg (ots Ad hoc-Service) -
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Following the unexpectedly sharp drop in its total audience in the second half of last year, Hamburg-based CinemaxX AG will report an operating loss of around Euro 11.9 million for the short 2000 financial year (July 1 i December 31). Earnings are further diminished by exceptional measures costing in the order of Euro 14.9 million.
The one-off expenses have been incurred directly in connection with a group-wide restructuring and costs optimisation programme which was launched last year at all levels of the company. According to Finance Director Marius Schwarz, earnings will in addition be affected by "considerable front-end costs" for the company's nine cinemas that are scheduled to open in the second half of the year in Germany, Denmark and Turkey.
The objective of the measures, some of which have already been implemented, is to promote the sustained consolidation of CinemaxX AG. According to its Finance Director, CinemaxX has registered "distinctly positive signs" of further improvements to the earnings situation, including contractual changes which will play an important part in safeguarding the company's future. Board Chairman Hans-Joachim Flebbe explained that CinemaxX will in future be concentrating on domestic business and on strengthening its market lead in Germany. The company is looking to shift the focus of its expansion abroad, and is therefore holding talks with various strategic partners.
Audience figures at German cinemas picked up significantly in the first eleven weeks of the new cinema year. According to Finance Director Schwarz, CinemaxX's total audience is "ahead of target". CinemaxX anticipates EBITDA to be in the black for the 2001 financial year as a whole, and expects to report a profit in 2002.
Queries: Thomas Schulz, Press, tel.(+49) 40 45068-181
WKN: 508570; Index: Listed: Amtlicher Handel in Frankfurt und Hamburg; Freiverkehr in Berlin, Düsseldorf, Bremen, München und Stuttgart
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Original content of: CinemaxX Holdings GmbH, transmitted by news aktuell