Germany's Splendid Medien plans to divest itself of its 80% interest in the US subsidiary Splendid Pictures Holdings, Inc. (SPH), subject to approval at the annual general meeting.
In statement, the group explained that the step was being taken "due to the currently difficult market environment surrounding the financing of US-American film projects and the high demand for liquidity as well as the difficulty in assessing the projects and implementation of international sales."
Issuing its figures for the 2002 financial year, Splendid reported that its net group results amounted to a loss of Euros 59.6m (2001: Euros 8.7m loss) and the EBIT to minus Euros 57.9m (2001: Euros 12.1m loss).
The net loss was largely due to amortisation of Euros 32.9m on film rights as well as another Euros 17.2m in extraordinary amortisation and depreciation of some of its other investments. Its investment in fellow Frankfurt-traded Internationalmedia cost it Euros 6.4m following a plunge in Internationalmedia shares.
Splendid's company equity amounted to Euros 11.5m at the end of the 2002 financial year - compared to Euros 71.1m the previous year - and liquid funds had contracted from 2001's Euros 22.5m to Euros 3.8m.