Advanced dims rev picture
Teutonic licensing co. suspends trading after issuing warning
In the latest sign of film company tribulation on Germany's Neuer Markt exchange, Advanced said it would not meet its revised revenue figures of DM70 million ($34 million) for 2000, predicting the final tally would be below $27 million -- its projected figure for the first three quarters of the year.
Company said it expected to record an eight-digit deutsche mark loss.
In a statement, the company blamed a poor run at the B.O. and pointed to the difficulty of selling licensing rights to German broadcasters, a major threat to local licensing companies that could make or break many of these outfits.
Without broadcasting assets of their own, aggressive Neuer Markt film companies such as Intertainment, Kinowelt and Helkon face the task of selling the broadcasting rights to the very people they often outbid for the rights in the first place -- media mogul Leo Kirch and Teutonic rival Bertelsmann. Some assert Kirch is trying to squeeze these companies out of the market.
Advanced has a joint-production venture with Wolfgang Petersen and a co-financing arrangement with Chuck Gordon; it also owns a majority stake in Unified Film Organization. Company said it sees no change in the potential of the Petersen agreement. Licensing-turned-DVD player EMS recently acquired a 25% stake in Advanced, with an option to take an additional 13%.
Company's stock dropped 37% on the news Friday to close at 1.80 euros ($1.68).
