Vértice 360, one of Spain’s biggest producer-distributors, has announced losses of $13.92m for the year to date.
It represents a significant drop on the same period in 2011, when Vértice reported a loss of $1.56m.
The company has debts of $38.44m, but this is down 38% on last year following an investment of $25.4m from US venture capital company HIG in October, acquiring the service division.
According to sources, Vértice is shutting down its distribution branch and Spanish distributors are bidding for the three films that the company has yet to open: Quartet from Dustin Hoffmann; Lawless from John Hillcoat; and Cabin in the Woods from Drew Goddard.
Vértice Cine’s production activity might also be on hold. The company’s last release was horror-comedy Game of Werewolves, which flopped at the box office.
Vértice Sales remains operational with titles such as Chrysalis, Looking for Eimish and war reporter documentary The Eyes of War.
Guillermo Gómez, director of content at Vértice, told ScreenDaily: “We are trying to renegotiate the conditions in which we acquired these films, as a lot of companies are doing.
“We are all facing a very difficult time with the VAT rise of tickets; the loss of public in cinemas; the cheap prices that TV broadcasters are paying for rights.”
Gómez is working to keep the production arm alive but remains cautious.
“We still want to produce films but the success of The Impossible and Tad, The Explorer shows that an international approach is the only way to make business. But we need to be cautious without taking unnecessary risks”.
Regarding the release of Quartet, Lawless and Cabin in The Woods, Gómez still hopes to see them released in Spain.
“This is not the time for big investments. We still believe in those titles but the prices must go down like everything else.”
The company has drawn up key strategy points to overcome losses, including a “reduction in budgets and staff” and more work on an international scale.
“We are playing a very different game than we were a few years ago”, added Gómez.
“We will have to adapt to new circumstances. We still believe in production and there is a lot of Spanish talent that we can use.
“But we have to be open minded, find new ways of producing and work on the basis that “content” is anything that you can see on a screen - any screen”.