EM.TV posts $1.3 billion loss
German kidvid outfit says worst is over
EM.TV said the figures reflected the company's restructuring after its rescue by German media group Kirch earlier this year and all write-offs and adjustments necessary to make a fresh start.
These included a $599 million write-down for EM.TV's Formula 1 racing stake and a $315 million for the purchase of Muppets creator Jim Henson.
"The figures reflect our strong will to make a clean break and to give a clear signal for a new start," CEO Thomas Haffa said. "We have cleaned the slate."
EM.TV said that it still had $691 million in capital available and that it had reduced its debts from $691 million to $108 million.
"The three essential reasons for the re-evaluation are the global changes in market conditions, in particular in the media branch, and, linked to this, a change in the method of evaluation and the logical application of the due diligence principal," Rolf Rickmeyer, the company's financial controller, said.
In December, EM.TV shocked the TV industry when it warned that profits would be 90% below expectations at $23 million.
Kirch initially took a 17% stake in EM.TV and half of EM.TV's coveted stake in Formula 1 racing. Kirch has since boosted its Formula 1 stake to 75%.
Several moves seem to indicate that there is a tighter regime at the company.
EM.TV recently appointed ex-DG Bank chief Bernd Thiemann as head of its supervisory board. Marius Schwartz, currently head of finance for German exhibitor CinemaxX and ex-head of finance for Kirch TV channel Sat 1, will reportedly replace Rickmeyer. And Rainer Huther - former head of Kirch sports channel DSF - recently replaced Hans Vriens as EM.TV's head of international marketing, merchandizing and sales.
