Studio Babelsberg AG Announces Preliminary Numbers for Fiscal Year 2008

27.01.2009

Positive business development continues

Studio Babelsberg AG announces preliminary numbers for fiscal year 2008. The corporation (individual financial statement) was able to generate profits in the amount of ca. EUR 3.6 M after taxes. The individual statements included an unplanned charge of ca. EUR 1.35 M from an adjustment of outstanding receivables.

Studio Babelsberg AG continues its shareholder friendly dividend policy. The board of directors and the board of supervisors have proposed to match last year’s dividend of EUR 0.20 per share. The dividend continues to be paid from the tax deposit account and therefore incurs no tax deductions.
 
With revenues of ca. EUR 65 M, Studio Babelsberg Group generated a EUR 2.7 M profit after taxes. The lower annual profit compared to the corporation is based in the elimination of unrealized profits from ongoing film productions in the amount of EUR 1.0 M. These profits will become effective in 2009, after the film productions have been completed.

In 2009, a total amount of seven productions were filmed at Studio Babelsberg that filled the Studio’s production capacities throughout the year. Specifically, the Warner Bros. / Silver Pictures / Dark Castle production Ninja Assassin provided the opportunity for a large number of purchases and commissions for Studio Babelsberg Motion Pictures, Art Department Studio Babelsberg and the Props Department. Continuing its successful business development, the Studio’s re-focusing strategies of 2004 continue to prove effective. At the heart of this strategy is a strong focus on domestic and international feature film production, lowering overhead costs, and extending studio capacity. Thanks to the German Federal Film Fund (DFFF), Studio Babelsberg was able to participate in numerous productions as co-producer, thereby strengthening Studio Babelsberg’s position in the international market as well as the entire German film industry. The Studio’s ability to participate as co-producer is an important instrument to succeed against international competitors.

A major milestone of 2008 was the decision to form a strategic alliance with Joel Silver, a deal that includes a profit share of the Dark Castle film-slate. In recent years, Joel Silver and Studio Babelsberg collaborated on feature films including V for Vendetta, Speed Racer and Ninja Assassin. The new agreement formalizes the working partnership between Silver Pictures and Studio Babelsberg. A major component of the agreement includes Studio Babelsberg’s participation as co-producer in all future productions of the Dark Castle slate. Moreover, the agreement guarantees a certain amount of films be produced at Studio Babelsberg.