Strong '97 results for Germany's Kinowelt

Indie distrib co sees more growth with New Line pact

By MIRIAM HILS

MUNICH -- With less than six weeks to go before becoming the first German indie distrib to be floated on the stock exchange, Munich-based Kinowelt Medien AG presented a strong set of 1997 figures at a press conference on Wednesday. The group's turnover rose to 119 million marks ($65 million) -- an increase of 130% over the previous year. During the same period, Kinowelt's pre-tax results grew 440% to 5 million marks ($2.7 million).

Kinowelt was the second most successful indie distrib in Germany last year, capturing 5.5% of the market with hits like "The English Patient" and "Scream." Kinowelt co-chairman Rainer Koelmel expects 1998 to be even better: "In addition to our ongoing relationship with Miramax, we now have an agreement with New Line. We have made the jump from arthouse to commercial distribution," Koelmel said. Kinowelt's slate for this year includes "Lost in Space," "Scream II," "The Wedding Singer" and "Cop Land."

The group is also upping its production activities, co-producing three medium-budget pics with Alliance. Istvan Szabo's "Sunshine," starring Ralph Fiennes, starts lensing this year, while Roman Polanski's "The Count of Monte Cristo" and a pic to be directed by David Cronenberg are in the planning stages.

Kinowelt is picking up a quarter of the costs of these projects, which will be produced in part in Germany. "The availability of public subsidies and the high level of professionalism make Germany an attractive location," Koelmel said. Kinowelt is also planning to co-produce English-lingo films with Miramax's London-based production arm, and is in the process of developing its own German-lingo productions.

In addition to its distribution and production activities, Kinowelt also has thriving licensing, video and exhibition units. Via relationships with Germany's major pay- and free-TV webs such as RTL, ProSieben and pubcasters ARD and ZDF, Kinowelt claimed 6% of the German TV rights distribution market last year. The company is also constructing new theaters, and will raise its screen number from 36 to a projected 47 by the middle of 1999. With the introduction of DVD discs, the group expects strong growth in the area of homevideos in the coming years.

Koelmel and his brother Michael believe these are ideal conditions for a floatation on the Frankfurt stock market. The family-owned company will raise its stock capital from $10 million to $13 million in anticipation of its listing on May 12.