ContentFilm reports drop in gross profits

EBITDA was down to $1.6 mil from $3.6 mil in 2007

LONDON -- Media rights company ContentFilm, listed here on the Alternative Investment Market, on Tuesday posted a drop in turnover, gross profits before tax and EBITDA for the six months ending Sept. 30.

Profit for the half-year period stood at 8 million pounds ($11.8 million), down from 10.2 million pounds during the same period in 2007.

Gross profit before operating expenses hit 3.4 million pounds ($5 million), falling from 5.2 million pounds last year. Normalized EBITDA was 1.1 million pounds ($1.6 million) for the first six months of 2008, down from 2.5 million pounds last year.

ContentFilm said that Fireworks International, the company's television distribution division, remains the focus of the group's growth plans. It also noted that ContentFilm International, the outfit's film sales division, has had "a slow first half" and a "weak full-year result is expected reflecting difficult conditions in the independent film industry."

In a statement to the stock exchange, ContentFilm nonexecutive chairman Alton Irby described the results as "satisfying" in light of "the reorganization of our U.S. home entertainment operations in June and the consequent restructuring costs."

Irby also pointed to the fact that the company remains "in the low risk area of the entertainment sector, namely film and television sales and distribution."

"We do not put at risk large capital amounts in acquiring our product and we have a wholly-owned library of recognized quality programming that drives our revenue and cash flow," Irby said. "As yet, we have not experienced any specific negative impact from global economic conditions, but we see our business as being resilient in the face of possible challenges over the coming period."