Red ink, bleak outlook for Constantin Medien
Q1 loss of $1.1 mil, revenue down 12%COLOGNE, Germany -- A tightening TV market cut deep into sales and profits at Constantin Medien. The parent company of German producer/distributor Constantin Film lost €900,000 ($1.1 million) in the first three months of 2010 while revenue fell 12% to €106.4 million ($131 million).
The still weak advertising business in Constantin's core German market translated into an 11.4% drop in sales (to €38 million ($47 million) for its sports division, which includes cable channel Sport1. Fewer TV commissions and lower licensing revenues bit into results for Constantin Film and small screen production outlet Constantin Entertainment. Revenue at Constantin's Film division fell nearly 20% to €51.4 million ($63 million) and the segment recorded a €2.1 million ($2.6 million) loss for the quarter.
The only bright spot for Constantin was its smaller sports and events marketing division, which markets rights to the soccer tournaments the UEFA Champions League and UEFA Europa League. Revenues soared 20% to €17 million ($21 million) and the division more than doubled its quarterly profits to €3 million ($3.7 million).
Constantin is expecting more of the same in the coming months. For the full year, Constantin is forecasting a loss of between €12 million - €14 million ($15 million - $17 million) and consolidated sales of between €440 million - €460 million ($541 million - $565 million).