Teuton film outfit Helkon cuts staff
Move follows first quarter upswing
The move comes a week after the company posted a 176% first quarter boost in pre-tax profits to 8.4 million euros ($7.5 million) on an 86% rise in sales to $49 million. At the same time, Helkon announced a loss of $8.3 million for the 2000-2001 business year, despite a 70% increase in sales to $116 million.
Company said its problems were related to the failure of Helkon distribution partner Buena Vista Intl. to unload film rights to output partners Kirch Group and RTL for commercial and pay TV exploitation, as well as the rescheduling of the release of "Rollerball" and the U.S. video release of "Memento." Also cited was the poor box office performance of "Rules of Engagement," as well as write-offs related to two money-losing subsidiaries.
Helkon said it is planning additional streamlining measures.
Meanwhile, the group's current business year has been buoyed by the domestic release of "The Mexican" and "The Gift," DVD sales of "Dungeons & Dragons" and the video exploitation of "Memento," and the international box office performance of "Jeepers Creepers."
