DB7

Big films boost Pinewood profits
A return of big productions like James Bond film Casino Royale and growth in televison revenues have boosted profits at Pinewood Shepperton Studios.

Pre-tax profit was £7.16m in the year to 31 December, from £571,000 in 2005.

Film revenues increased 22% to £22.6m and other blockbuster films that used the Pinewood studios included Eragon and His Dark Materials, the firm said.

Pinewood added that its decision to push further into TV had paid off, with revenues at the unit up 32% to £11.8m.

Tax breaks

"As we anticipated, a number of significant film customers returned to Pinewood Shepperton during 2006," said chief executive Ivan Dunleavy.

The group said that the government's new film tax credit was a key factor in the improvement, adding that it led to a 48% increase in overall film spending in the UK.

In previous years, uncertainty over tax breaks had led to at least one Hollywood production delaying filming at the studios.

This uncertainty was one reason that the company looked to branch out into TV production.

"Our strategy to diversify further into television has resulted in significant revenue growth from this activity, which increasingly will help to mitigate the effects of more volatile film revenues," Mr Dunleavy added.

Looking ahead, the group added it expected to benefit from increased investment in programme production from major broadcasters and independent firms.

"As UK consumers enjoy more available channels, we expect to continue to build our television studio market share as well as hosting a number of channels, particularly at our Teddington Studios," the company added.

johnlassiter

Although, according to today's Financial Times, Pinewod's success was also helped by an insurance claim paid in respect of the fire which destroyed the James Bond stage....

Bond's latest flame had hidden charms
By Clay Harris

One of the low points of Pinewood Shepperton's year was a fire on the studio's 007 stage, a vast 45,000 sq ft set that had been turned into a replica of Venice for Casino Royale, James Bond's most recent outing.

Yet the fire was not the financial disaster it might have been, according to Ivan Dunleavy, chief executive. Dunleavy said: "New accounting rules mean we have to take the insurance proceeds, deduct impairment to the asset's book value and associated costs and record the surplus as an exceptional profit."

Result? A £900,000 one-off boost to his figures. "It's certainly cutting-edge accounting," he admitted.

It must be only a matter of time before IAS 16 turns into a plot line. Bond villains have been driven by less dastardly motives.

FT.com / Home UK / UK - Bond's latest flame had hidden charms

ChristineCB

I'm not a big fan of CASINO ROYALE, but I'm a big fan of the creative gauntlet that they answered with that film. I hope they'll try more on the product-side than relying on accounting or insurance.

DB7

Hold-ups hurt Pinewood shares

Katie Allen, media business correspondent
Wednesday June 13, 2007

Film and television studio owner Pinewood Shepperton was forced to admit today that bookings from film-makers had not flooded in as expected for this year and that revenues would be hit as a result.

Shares in the studios, which have hosted production for the latest James Bond film Casino Royale, fell back 15.25p, or 5.3%, to 272p in early trading before recovering slightly to 277.75p by lunchtime.

Pinewood had previously said that a number of major film projects would commit to production later in the year and that as a result its film revenues would be weighted to the second half.

In reality, the bulk of those film productions that are slated to start late in 2007 and continue into 2008 "will commence filming some weeks later than previously expected", the company said.

That is good news for the first half of 2008 but not so positive for this year's takings.

"As a result of this timing delay, reported film revenues for 2007 are likely to be flat year-on-year. Overall group revenues are expected to show only a small year-on-year increase," it said.

Filming of the next Bond instalment is due to start at the beginning of 2008, but Pinewood declined to say which films have been delayed.

Despite Pinewood's update and fierce competition from countries in eastern Europe with cheaper costs, many industry experts predict 2007 could be the most lucrative yet for the British film industry. That is largely because, from this year, the Treasury is offering up to 20% tax relief for small budget films and 16% for films costing more than £20m.

But film revenues have shown no sign of being less volatile, and as a result Pinewood has been increasingly turning to television.

Chief executive Ivan Dunleavy today sought to flag up the offsetting impact of the growing television business, which has hosted the filming of the Weakest Link and My Family.

"Our strategy to diversify our business away from more volatile film revenues continues to show positive benefits," he said.

TV revenue growth outstripped film in 2006 and the company added that "as anticipated, growth in our television revenues is expected to come through in the second half".

harryfielder

I still have great memories of Pinewood studios...

Aitch,

http://www.turnipnet.com/aitch/aitch/gallery.htm

christoph404

Pinewood always seems to survive and scrape through the ups and downs of British cinema, long may it continue, though the increasing popularity for filming in eastern Europe for cost reasons is a bit of a concern Im sure. Once again DB7 you have presented a very interesting and thought provoking peice! Cheers!

DB7

Not me, kindly lifted from the Graun. It'll probably be over the next year or two we'll see whether or not the Treasury's cultural tax breaks have a positive or negative effect. Sadly tho it does appear that a lot of producers are using Romania as a cheaper option for British-looking location shooting.

christoph404

Hi DB7, kind of figured you were "presenting" a piece by anothers hand, but cheers all the same for bringing it to us and all the other peices you "present" in the other threads, very interesting reading which I wouldn't otherwise find if it wasn't reproduced here.

ChristineCB

And another big Thanks from me, too.