Internationalmedia losses rise sans pix
'T3,' 'Mindhunters' accounted for much of co.'s revenue
Minimum guarantees from "Mindhunters," which has yet to open Stateside but has unspooled in a number of other territories, as well as overages from "Terminator 3: Rise of the Machines," accounted for much of the revenue, company said Thursday.
While four Intermedia pics opened in the first half of 2003, "Mindhunters" has been the only company film to hit screens this year.
Yet the delay of the pic's release in significant markets has cost Internationalmedia some $2.2 million, according to company topper Moritz Borman.
Although down $1.5 million from last year, development costs of $11.2 million further squeezed Internationalmedia's half-year result.
Borman reiterated that "a return to profitability is not expected in 2004, mostly due to the high depreciation of film development costs."
The company's management is focused on optimizing all costs, Borman added, but asked short-term investors to be patient.
Internationalmedia shares closed at 70¢ Thursday, up 1.8% from the previous day.
Borman added that the sale of Initial Entertainment Group to toppers Graham King and Colin Cotter earlier this year saved Internationalmedia $20 million, while cost-cutting measures slashed overhead spending 31% to $8 million.
