ContentFilm revenue up despite DVD woes
Aborted Peace Arch deal called ‘a distraction’LONDON -- Media rights company ContentFilm, listed here on the Alternative Investment Market, on Wednesday posted a jump in revenue for the year ending March 31, despite a disappointing year for U.S. home entertainment division Allumination FilmWorks and difficult trading conditions.
ContentFilm chairman Alton Irby said that the aborted deal in March to sell ContentFilm to Canada's Peace Arch Entertainment had been "a distraction" that affected the company's ability "to confront issues such as a restructuring of Allumination during FY08."
"Nevertheless, it is particularly pleasing to have absorbed these negative issues and still return a positive normalized EBITDA of 4 million pounds ($7.9 million)," Irby said.
Much of the positive result came from Content's film and television operations and sales agreements from its 5,000-hour plus film and television library.
ContentFilm posted a 3.1 million pounds ($6.2 million) rise in revenue to 24.1 million pounds ($48 million) for the year ending March 31, up from the previous year's 21 million pounds ($41.7 million).
But gross profit fell slightly to 10.5 million pounds ($21 million) during 2008, down from 10.9 million pounds ($21.7 million).
Allumination FilmWorks had a "disappointing year," posting a normalized EBITDA loss of 200,000 pounds ($397,500), after 2007's profit of 1.8 million pounds ($3.6 million).
ContentFilm recently announced an agreement to merge Allumination FilmWorks with the U.S. home entertainment division of Peace Arch Home Entertainment. Significant cost efficiencies and other synergies are expected from the merger, the company said.