Becker announces profit downturn

Australian entertainment company, Becker Group Limited, today announced that it is expecting a result for the December half year significantly below that for the corresponding half last year.
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Australian entertainment company, Becker Group Limited, today announced that it is expecting a result for the December half year significantly below that for the corresponding half last year. The principal reasons for the less than expected result are:

  • Poor performance of the film distribution division, particularly due to the recent unexpected weak theatrical release in Australia and New Zealand of the film Fast Food Nation;
  • A decline in projected advertising revenue for the Moonlight Premium Cinema Advertising division primarily resulting from strong competition in the advertising market. New local advertising arrangements together with some positive communications from the media buying community suggest that the business has the opportunity to considerably strengthen its performance in the second half;
  • A provision for expenses which may be incurred by Becker Films International Pty Ltd arising from arbitration proceedings relating to the feature film Marigold, for which that company holds international sales rights.

    The Group is now expecting a break even result for the first half which will significantly impact on the Group’s ability to deliver a full year result similar to the result delivered in the 2006 year. The result for the second half is expected to be an improvement on the previous corresponding period.

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