ContentFilm issues profit warning
Lower Q4 expected to affect full-year revenue, pretax profitLONDON -- Media rights firm ContentFilm, listed here on the Alternative Investment Market, issued a profit warning Friday, saying that the economic climate is having an impact on its final quarter, which will likely affect full-year 2009 revenue and pretax profit.
"We now expect the FY09 revenue and normalized profit to be lower than market expectations, with revenue being approximately 10%-12% lower than the comparable period in 2008," a statement to the market read.
But Fireworks International, Content's television distribution division, is expected "to produce a positive and solid FY09 result" despite a "general slow down in trading and revenue."
ContentFilm International, the movie sales and distribution business, also will have a disappointing year.
"Alongside a generally challenging market, several of our titles which were expected to be delivered in FY09, have been delayed and are now expected to be delivered in FY10," the company said.
The latest CFI productions include Woody Harrelson starrer "The Messenger," produced by Mark Gordon; the true story of Hawaii's "Princess Ka'iulani" starring Q'orianka Kilcher; action thriller "Horse" with Diego Luna; suspense thriller "The Killing Room" with Chloe Sevigny; and the Samantha Morton starrer "The Daisy Chain."
Content said that its U.S. dollar net debt has increased marginally since the interim results statement and currently stands at about $34 million. The sterling equivalent of the loan has increased more significantly due to the falling pound against the dollar.
"We will maintain our low risk distribution model and continue to manage our costs and protect our liquidity," ContentFilm CEO John Schmidt said. "The company is well placed to continue to trade solidly in this difficult period and remains confident in its strategy which the board believes will hold the group in good stead over the coming period."