Digest: Axel boosts revenue; Carmike tumbles
EmptyDeAgostini runs Marathon
DeAgostini's $363 million acquisition of French television content producer Marathon became official Wednesday as the deal was completed ahead of schedule. The deal, which strengthens the Italian publisher's toehold in the television sector, was initiated in July and expected to be completed by year's end. DeAgostini also acquired control of Italian content company Magnolia this year and it attempted to take control of Dutch reality television company Endemol before being outbid by rival Mediaset.
Acquisitions up Axel revenue, cut profit
Thanks to acquisitions, European publishing giant Axel Springer boosted revenue in the first nine months of the year by about 9% to €1.9 billion ($2.8 billion). Springer's buying spree included several Internet sites this year, including European women's portal Aufeminin.com and German marketing services provider Zanox.de as well as old media businesses like Swiss publisher Jean Frey. The cost of consolidating the acquisitions as well as a €47.8 million ($70.3 million) loss from postal services subsidiary Pin Group cut into Springer's profit, which was up just 3.6% to €179.6 million ($264 million).
Carmike Q3 not enough for Street
Carmike Cinemas tumbled 19.7% on Wednesday, one after reporting third-quarter results that disappointed Wall Street analysts. The movie-theater operator posted a profit of $2 million, or 16 cents a share, but analysts were forecasting a profit of 37 cents a share. Revenue of $135.3 million also was below analyst expectations. Shares of Carmike fell $3.02 to a 52-week low $12.32, making it Wednesday's worst performer on The Hollywood Reporter Showbiz 50 stock index.