Hoyts sells cinemas stake to Kinowelt

Move signals more Oz defection

BERLIN — Kinowelt Medien is buying out Oz cinema giant Hoyts’ stake in the companies’ joint venture in Germany, Theile Hoyts Entertainment. Deal marks the second time in recent weeks that a German distrib has come to the rescue of the ailing Teutonic exhibition sector and signals the continuing departure of Oz chains from Europe.

German distrib heavyweight Kinowelt is taking a 50.1% stake in Theile Hoyts, Germany’s fifth largest multiplex chain, operating 10 plexes under the group’s Kinopolis banner. Revenues for the group were DM70 million ($32.1 million) last year, generated from 5.1 million cinema visits. Screens number 86, bringing Kinowelt’s total to more than 100.

For Kinowelt, whose core business is licensing, deal marks a new stamping ground and significantly boosts its number of cinemas; exhibition has until now only been a minor part of the company.

Acquisition brings Kinowelt one step further in covering the entire chain of rights exploitation from production through licensing to exhibition. Company is also working on plans to launch a TV channel and expand its online activities.

Rival distrib Senator Film took a 25% stake in leading multiplex web CinemaxX in late April — the first example of a German distributor targeting local exhibition companies.

Hoyts entered the German market in May 1998, paying $28 million for its stake in Theile Hoyts.