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

By NZPA

Wednesday 21st August 2002

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.

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