Sharechat Logo

Force Corp posts $20 million deficit, halves last year's loss


Wednesday 21st August 2002

Text too small?
Cinema operator Force Corporation posted a net loss for the year ended June of $20.13 million, more than halving its previous annual deficit.

Operating surplus before tax and unusual items was $2.28 million, compared with a $3.88 million deficit the previous year.

Force company secretary Peter Holdaway said in a statement today that the improved result was led by the company's core New Zealand and Fiji operations.

During the period Force shouldered one-off costs associated with its New Zealand and Argentinian debt facilities, and wrote off its investment in Village Cinemas SA in Argentina.

Earlier this year it announced a $31 million notes issue to provide funding for its debt-ridden Argentinian joint venture, Village Cinemas. Force owns 25 percent of the 69-screen cinema chain.

Force settled a legal dispute with MTM Entertainment Trust of Australia over ownership of the Force Entertainment Centre in Auckland during the period, resulting in additional rental income boosting group revenues by $5.9 million for the year, Mr Holdaway said.

The New Zealand cinemas business rose 29.9 percent to $27.1 million, as admissions rose by 18.3 percent and the average ticket price gained 9.1 percent to $8.62.

Damodar Village Force, Force Corporation's joint venture cinema operation in Fiji, reported a 20.8 percent increase in revenue to $2.5 million.

Force, which is half owned by casino operator Sky City, closed its Imax cinema complex in Auckland in April.

Sales revenue rose 13 percent to $33.87 million, and operating revenue totalled $54.49 million ($53.36 million the previous year).

Strong movie product, increased marketing and promotions, the opening of Force's joint venture 10-screen multiplex in Auckland in mid-2003, and a focus on managing costs were expected to improve Force's performance this current financial year, Mr Holdaway said.

Force will not pay a dividend.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Force revamps faded food star
Force rights await underwriter
Force extension allowed - on condition
Good movie prospects, shame about the debt
Force sells film holding