CANNES - Earnings at German television and film group Constantin Medi
en took an expected dip in the first quarter amid lower revenue and higher expenses.
Higher production costs for new releases - Constantin is producing the hotly-anticipated The Mortal Instruments: City of Bones, the first in a planned youth fantasy franchise - as well as increased licensing expenses for acquired titles meant Constantin's film division booked a $2.3 million (€1.8 million) loss in the first quarter.Quarterly revenue fell 4.2 percent to $134 million (€103.7 million), and profit dropped to $645,000 (€500,000) from €700,000 in the year-ago period.
Revenue at Constantin's sports and events marketing operations took a hit, falling 44 percent to $2.3 million (€10.1 million), a result of a changes in Constantin's deal with European soccer body UEFA to market the Champions League soccer tournament. But the unit's profit was up.
Constantin CEO Bernhard Burgener said the company's first-quarter results "met our expectations" and noted high expectations for the release of The Mortal Instruments film this summer.
Constantin is well financed for the coming years, thanks in part to a new $84 million (€65 million) five-year corporate bond the company secured in April.
For the full year, Burgener confirmed early forecasts that put group revenue at $568 million-$619 million (€440 million-€480 million) and calls for a profit.
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